Physical Units Are 40,000

question 113

Multiple Choice

Physical units are 40,000.Total conversion costs are $237,000.There are 1,000 units in ending inventory which are 50% complete as to conversion costs.How much are conversion costs per unit?

• A)$6.00.
• B)$5.92.
• C)$11.86.
• D)$5.78.

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Definitions:

Income From Operations

The earnings generated from a company's primary business activities, excluding non-operating income and expenses.

Investment Center

A business unit within an organization that is responsible for its own revenue, expenses, and investments, and is analyzed for profitability.

Service Department

A segment within a company that provides support services to the production departments or other direct operational areas, helping them operate efficiently.

Charge Rates

Prices or rates established for services provided, often used in professional industries like law and consulting.