The Following Information Pertains to Korning Corp

question 3

Multiple Choice

The following information pertains to Korning Corp.:How many total units must be sold to obtain an after-tax profit (πA) of $47,775?

• A) 780 units.
• B) 894 units.
• C) 955 units.
• D) 1,021 units.

---

Definitions:

Cost System

A method or process used by a company to capture, measure, and allocate costs to products, services, or other cost objects.

Conversion Cost

The combined cost of direct labor and manufacturing overheads, which are necessary to transform raw materials into finished goods.

Equivalent Unit

represents a measure used in process costing, converting work-in-process into the number of finished units, facilitating cost allocation.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold based on the average cost of all items in inventory, taking into account the quantity of each item.