Information from the Records of the Scully Company for July

question 201

Multiple Choice

Information from the records of the Scully Company for July was as follows:
$\begin{array}{llr} \text { Sales } &\$307,500\\ \text { Selling and administrative expenses } &52,500\\ \text {Direct materials used } &66,000\\ \text { Direct labour } &75,000\\ \text { Variable factory overhead} &50,000\\ \text {Factory overhead } &51,250\\\end{array}$
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Inventories }$
$\begin{array}{lrr}&\text {July 1}&\text {July 31}\\\text { Direct materials } & \$ 8,000 & \$ 10,500 \\\text { Work in process } & 18,750 & 21,000 \\\text { Finished goods } & 17,250 & 14,250\end{array}$
Scully Corporation produced 20,000 units.
-Refer to the figure.What were the prime costs per unit for July?

• A)$7.05
• B)$8.8125
• C)$14.7375
• D)$20.00

---

Definitions:

Autos Assembled

The total count or volume of automobiles manufactured and put together in a production process within a specific time frame.

Robots

Machines or automated systems capable of carrying out a series of actions automatically, either through programming or via artificial intelligence.

Workers

Individuals engaged in physical or intellectual labor to produce goods and services in exchange for wages.

Production Function

A mathematical model that describes the relationship between the inputs used in production and the output of goods or services.