Table 13-1 Measures of Cost for Splashy Cardboard Kayak Factory

question 101

Multiple Choice

Table 13-1
Measures of Cost for Splashy Cardboard Kayak Factory.

-Refer to Table 13-1. What is the marginal cost of producing the first kayak?

• A) it can't be determined from the information given.
• B) $0
• C) $2
• D) $20

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Definitions:

Costs Accounted For

Total costs that have been recognized and recorded within a specific accounting period.

Ending Work in Process Inventory

The value of partially completed goods at the end of an accounting period.

Weighted-Average Methods

An inventory costing method that assigns an average cost to each unit, based on the weighted average of the costs of the goods available for sale.

Direct Labor Costs

Direct labor costs are the wages and other benefits paid to employees who are directly involved in the production of goods or services.