In Its Initial Year of Operation,Montoya Manufacturing Started and Completed

question 1

Multiple Choice

In its initial year of operation,Montoya Manufacturing started and completed 4000 identical widgets and had 1000 widgets that were 40 per cent complete in work-in-process at the end of the year.Total production costs for the year were $55 000.What is the cost per equivalent unit?

• A) $12.50
• B) $11.00
• C) $11.96
• D) $13.75

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Definitions:

Standard Error

An estimate of the standard deviation of the sampling distribution of a statistic, typically used to measure the accuracy of a sample mean.

Normal Distribution

A probability distribution that is symmetrical around the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Degrees of Freedom

The number of independent values or quantities that can vary in the analysis of statistical data, crucial for assessing the reliability of various statistics.

Unbiased Estimator

An unbiased estimator is a statistical term for an estimate that is expected to be equal to the true parameter of the population.