Mayer Company Has Recently Tried to Improve Its Analysis for Its

question 188

Multiple Choice

Mayer Company has recently tried to improve its analysis for its manufacturing process. Units started into production equaled 18000 and ending work in process equaled 1200 units. Mayer had no beginning work in process inventory. Conversion costs are applied equally throughout production and materials are applied at the beginning of the process. How much is the materials cost per unit if ending work in process was 25% complete and total materials costs equaled $72000?

• A) $4.00.
• B) $4.21.
• C) $16.00.
• D) $3.75.

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Definitions:

Condensed Balance Sheets

A simplified financial statement showing the summary of a company's financial position, including assets, liabilities, and equity at a specific point in time.

Excess Consideration

The amount by which the price paid for an acquisition exceeds the total fair value of its identifiable net assets.

Noncurrent Assets

Assets not expected to be converted into cash, sold, or consumed within one year or the operating cycle, such as property, plant, and equipment.

Multiple Acquisitions

The process by which a company buys several companies in a short period, often to consolidate their industry or diversify.