Shiffon Electronics Manufactures Music Player

question 29

Multiple Choice

Shiffon Electronics manufactures music player. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department, the Programming department, and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Shiffon Electronics uses weighted-average costing.
The following information is available for the month of March 2017 for the Assembly department.

What is the direct materials cost per equivalent unit during March? (round to the nearest dollar)

• A) $903
• B) $857
• C) $575
• D) $281

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Definitions:

Behavioralist Approach

A method in economics that uses psychological insights into human behavior to explain economic decision-making.

Legal Cartel Theory

A concept in economic theory suggesting that certain legal frameworks or conditions can enable firms to engage in cartel-like behavior without explicit agreements.

Sherman Act

A landmark federal statute in the field of United States antitrust law passed by Congress in 1890 to prohibit monopolistic business practices.