Lens Care Inc

question 94

Multiple Choice

Lens Care Inc. (LCI) manufactures specialized equipment for polishing optical lenses. There are two models - one mainly used for fine eyewear (F-32) and another for lenses used in binoculars, cameras, and similar equipment (B-13) .
The manufacturing cost of each unit is calculated using activity-based costing, using the following manufacturing cost pools:
The product cost for model F-32 is:

• A) $1,457.82.
• B) $1,293.32.
• C) $1,159.34.
• D) $905.31.
• E) $980.91.

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Definitions:

Owner's Equity

Represents the residual value of a business's assets after deducting its liabilities, indicating the ownership interest of the business owners.

Balance Sheet

A financial statement that displays a company's financial position at a specific point in time, showing assets, liabilities, and stockholders' equity.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, including income statement, balance sheet, and statement of cash flows.

Proprietorship

A type of business entity owned and operated by one individual, where there is no legal distinction between the owner and the business.