The Following Data Pertains to Lam Co $\text { Additional information for the month of April: }$

question 69

Multiple Choice

The following data pertains to Lam Co.'s manufacturing operations: $\begin{array}{lrr}\text { Inventories } &{4 / 1} &{4 / 30} \\\text { Direct Materials } & \$ 18,000 & \$ 15,000 \\\text { Work in Process } & 9,000 & 6,000 \\\text { Finished Goods } & 27,000 & 36,000\end{array}$
$\text { Additional information for the month of April: }$
$\begin{array}{lr}\text { Direct materials purchased }&\$32,000\\\text { Direct labor } & 30,000 \\\text { Direct labor rate per hour } & 10.00 \\\text { Factor overhead incurred } & 40,000\end{array}$
$\text { Overhead is applied at } \$ 12 \text { per direct labor hour. }$ For the month of April, conversion cost incurred was:

• A)$75,000.
• B)$66,000.
• C)$70,000.
• D)$39,000.

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Definitions:

Monopolist

An entity with exclusive control over the supply of a particular good or service, setting prices and production levels.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider in different markets or to different customers.

Perfect Competition

A market structure characterized by a large number of small firms, a homogeneous product, freedom of entry and exit, and perfect information, leading to firms being price takers.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing the benefit to consumers.