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:

Put Option

A financial contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price before or on a specified date.

Convertible Bond

A bond that offers the option to be exchanged for a set number of shares in the issuing company at specific intervals throughout its duration, typically at the choice of the person holding the bond.

Discount Rate

The interest rate used to discount future cash flows to present value, reflecting the time value of money and investment risk.

Conversion Rate

The percentage of users who take a desired action, such as making a purchase or signing up for a newsletter.