In Its Initial Year of Operation, Sampson Production Started and Completed

question 7

Multiple Choice

In its initial year of operation, Sampson Production started and completed 2000 identical telephones and had 1000 telephones that were 30 per cent complete in work-in-process at the end of the year. Total production costs for the year were $40 000.
-What is the cost per equivalent unit in Sampson Production?

• A) $17.80
• B) $17.39
• C) $13.33
• D) $12.50

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Definitions:

Manufacturing Process

The series of operations involved in the production of goods, which may encompass various methods of transforming raw materials into finished products.

Perpetual Inventory Systems

are accounting methods where inventory records are updated immediately whenever a transaction happens, providing real-time inventory levels.

Computers

Electronic devices capable of processing information according to a set of instructions called programs.

Stocks

Financial instruments representing ownership shares in a company, allowing investors a claim on part of the company's profits.