Information from the Records of the Scully Company for July

question 83

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 are the conversion costs per unit?

• A)$7.05
• B)$8.8125
• C)$12.1125
• D)$14.7375

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Definitions:

Market Price

The present rate at which a service or asset is available for purchase or sale on the public market.

Earnings Per Share

A key financial indicator that quantifies a company's net profit divided by the number of common shares it has outstanding.

Discontinued Operation

A segment of a company's business that has been sold, ceased, or abandoned and is reported separately on the income statement.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, determining profit or loss for that period.