Realm Company Uses Process Costing and Had an Equivalent Cost

question 30

Multiple Choice

Realm Company uses process costing and had an equivalent cost of $2.30 per unit for direct
Materials and $1.80 per unit for conversion costs during May in its Rolling Department.There were 11,600 units completed and transferred to finished goods, and 1,000 units in ending Work in Process inventory for the Rolling Department that were 80% complete with respect to direct material and 60% complete with respect to conversion costs.How much is ending Work in Process in the Rolling Department at the end of May?

• A)$47,560
• B)$50,480
• C)$2,920
• D)$3,220

Comprehend the concept and purpose of purchase allowances in resolving customer satisfaction issues.

Recognize the role of price reductions in facilitating the sale of damaged or defective merchandise.

Identify the key differences between a single-step and a multiple-step income statement.

Understand the classification and significance of general and administrative expenses in supporting company operations.

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Definitions:

Visual Images

Mental representations of objects, scenes, or events that are not physically present, often used in cognitive and perceptual psychology.

Manipulate

To skillfully handle, control, or use something, often with the connotation of unfairness or deceit.

Sensory Modalities

Different forms of sensory perceptions, such as sight, sound, touch, taste, and smell, through which humans and animals perceive the world.

Smell

A sense that detects odors or scents, which is mediated by specialized sensory cells in the nasal cavity.