Physical Units Accounted for Are 160,000

question 118

Multiple Choice

Physical units accounted for are 160,000.Total conversion costs are $276,500.There are 4,000 units in ending inventory which are 50% complete as to conversion costs.How much is the conversion cost per unit?

• A)$1.75.
• B)$1.73.
• C)$1.71.
• D)$1.69.

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Definitions:

Constant Growth DDM

A dividend discount model that assumes dividends will continue to increase at a constant growth rate indefinitely, used to evaluate the price of a stock.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividends and without voting rights.

Plowing Back

The reinvestment of earnings by a company back into its own operation or projects, also known as retained earnings.

ROE

Return on Equity, a financial ratio that measures the profitability of a business in relation to shareholder’s equity, indicating how well a company uses investments to generate earnings growth.