The Debits to Work in Process-Assembly Department for April, Together

question 51

Multiple Choice

The debits to Work in Process-Assembly Department for April, together with data concerning production, are as follows: All direct materials are placed in process at the beginning of the process and the average cost method is used to cost inventories.
The conversion cost per equivalent unit (to the nearest cent) for April is:

• A) $2.70
• B) $2.53
• C) $3.31
• D) $5.60

---

Definitions:

Vertical Acquisition

A corporate strategy where a company acquires another company in the same supply chain.

Conglomerate Acquisition

The process by which a large corporation, often with diversified interests, acquires another company often in an unrelated industry to diversify its holdings.

Horizontal Acquisition

The purchase of a competing company in the same industry, aiming to increase market share or achieve economies of scale.

Vertical Acquisition

The purchase of a company that operates in the production process of the acquiring company's industry, either as a supplier or distributor.