Use the Following Information for the Next 5 Questions

question 139

Multiple Choice

Use the following information for the next 5 questions.
You are given the following information for the SJK Company for January: The total processing cost per equivalent unit was $15 in January. SJK considers spoilage equal to 5% of the good units transferred out to finished goods to be normal. SJK uses the weighted average method of process costing for its sole production department, and inspection for spoiled units occurs at the end of processing.
-The costs attached to good units completed and transferred out total

• A) $375,000
• B) $405,000
• C) $425,250
• D) $435,000

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Definitions:

Cash Dividends

Payments made by a corporation to its shareholders from its earnings in the form of cash.

Bond Restriction

Conditions or covenants included in a bond agreement that impose certain limitations on the issuer's actions.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations using its current assets.

Pension Plans

Financial programs set up to provide income to individuals during retirement, usually funded by employers or the government.