A Manufacturing Company Recorded the Following Data Pertaining to Raw

question 38

Multiple Choice

A manufacturing company recorded the following data pertaining to raw material X: $$\begin{array} { | l | l | l | } \hline & \text { Units } & \\& \text { Received } & \text { Cost } \\\hline 1 / 1 / 2001 \text { Inventory } \ldots \ldots \ldots \ldots \ldots \ldots & 400&\$1.00\\\hline 1 / 8 / 2001 \text { Purchase } \ldots \ldots \ldots \ldots \ldots \ldots & 600 & \$ 1.10 \\\hline 1 / 12 / 2001 \text { Issue } \ldots \ldots \ldots \ldots \ldots \ldots \ldots & 800 & \$ 2.00 \\\hline\end{array}$$ The weighted average unit cost of raw material X at January 12,2001 for use in costing is:

• A)$1.00
• B)$1.05
• C)$1.06
• D)$1.10

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Definitions:

Table of Contents

A list found at the beginning of a document, book, or report, detailing the titles or descriptions of its sections and the pages on which they start.

Held-to-maturity

A classification for investment securities that a company has the intent and ability to hold until they mature, typically applicable to debt securities.

Bond Investment

A form of investment where an investor loans money to an entity, typically corporate or governmental, which borrows the funds for a defined period at a fixed interest rate.

Other Comprehensive Income

This includes revenues, expenses, gains, and losses that are excluded from net income on the income statement.