What Is the Total Cost (TC)at the EOQ

question 19

Multiple Choice

What is the Total Cost (TC) at the EOQ?

• A)$3000
• B)$7300
• C)$9000
• D)$12700

---

Definitions:

Equivalent Units

Definition: A concept in cost accounting, equivalent units measure the amount of work done on partially finished goods, expressed in terms of fully completed units.

Direct Materials

Raw materials that can be directly attributed to the production process of a good or service and are an integral part of the finished product.

FIFO

An inventory valuation method where the first items purchased are the first ones to be used or sold.

Cost Per Unit

The total expense involved in creating a product, divided by the number of units produced, giving a per-unit cost.