The Assembly Department of Smart Computers Incurred $250,000 in Direct

question 38

Multiple Choice

The Assembly Department of Smart Computers incurred $250,000 in direct materials and $75,000 in conversion costs. The equivalent units of production for direct materials and conversion costs are 1,000 and 800, respectively. The cost per equivalent unit of production (EUP) for conversion costs is:

• A)$93.75 per EUP.
• B)$75.00 per EUP.
• C)$312.50 per EUP.
• D)$250.00 per EUP.

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Definitions:

Price Ceiling

A legally imposed limit on the price charged for a product, intended to prevent prices from reaching levels deemed too high.

Price Support Program

Government initiatives intended to maintain the market price of a good or service above its equilibrium level by buying excess supply or restricting supply.

Government

The system or group of people governing an organized community, often a state.

Farmers

Individuals or entities engaged in the practice of agriculture, cultivating plants and raising livestock for food, fiber, and other products.