At the Beginning of the Current Year,Smith Company Installed a JIT

question 15

Multiple Choice

At the beginning of the current year,Smith Company installed a JIT purchasing and manufacturing system.The following information has been gathered about one of the company's products. $\begin{array}{lr}\text { Theoretical annual capacity } & 4,000 \\\text { Actual production } & 3,600 \\\text { Production hours available } & 2,000 \\\text { Actual cost per unit } & \$ 28\end{array}$

-What is the ideal conversion cost per unit?

• A)$14 per unit
• B)$15.55 per unit
• C)$50.90 per unit
• D)$56 per unit

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Definitions:

Starches

Complex carbohydrates composed of numerous glucose units, serving as a vital energy store in many plants.

Pigment

A substance that selectively absorbs light of specific wavelengths.

Stomatal Opening

The process by which stomata, the microscopic pores found on the surface of leaves, open to allow for gas exchange, including releasing oxygen and taking in carbon dioxide.

Blue

A color associated with a wavelength between 450 and 495 nanometers, often used in biological contexts to refer to coloration in cells or tissues.