Use the Information Below to Answer the Following Question(s)

question 106

Multiple Choice

Use the information below to answer the following question(s) .Waldorf Computer Systems, Inc.manufactures computer memory cards, and uses process-costing.All direct materials are added at the inception of the production process.The accounting department noted that there was no beginning inventory for January.Direct Materials purchases totalled $150,000 during the month.Work-in-process records revealed that 7,500 cards were started in January, 4,500 cards were complete, and 1,500 units were spoiled as expected.Ending work-in-process units are complete in respect to direct materials costs.Inspection occurs at the end of the process.
-What are the Waldorf Computer Systems Inc.respective direct material costs per equivalent unit assuming spoiled units are counted when computing output in equivalent units, and when not counting spoiled units in the equivalent unit total?

• A)$15.00; $20.00
• B)$20.00; $25.00
• C)$25.00; $30.00
• D)$30.00; $35.00
• E)$35.00; $40.00

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Definitions:

Storage Sites

Locations or facilities used for the safekeeping of goods or materials until they are needed or dispatched.

Return On Equity (ROE)

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Liabilities

Financial obligations or debts owed by a business or individual to others that must be paid back.

Assets

Resources owned by a business or individual that have economic value and can contribute to future profits.