Chapin Company Manufactures Generic Notebooks

question 93

Multiple Choice

Chapin Company manufactures generic notebooks.Material is introduced at the beginning of the process in the Printing Department.Conversion costs are applied uniformly throughout the process.The weighted-average method of product costing is used.Data for the Printing Department for the month of June follow: Work-in-process inventory,June 1:
With regard to the work-in-process inventory on June 30,materials are 100 percent complete and conversion costs are 50 percent complete.The unit cost for conversion costs is ________.

• A)$2.62
• B)$2.80
• C)$2.88
• D)$3.15

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Definitions:

Freedom To Farm Act

A U.S. federal law enacted in 1996 aimed at allowing farmers greater management flexibility in what they plant and produce.

Agricultural Price Supports

Government interventions to stabilize or increase agricultural product prices through mechanisms such as subsidies or purchase commitments.

Acreage Allotments

A pre-1996 government program that limited the total number of acres to be used in producing (reduced amounts of) various food and fiber products and allocated these acres among individual farmers. These farmers had to limit their plantings to the allotted number of acres to obtain price supports for their crops.

Parity Ratio

is a measurement used to compare the value of one thing against another, often in agriculture or finance.