Excalibur Ltd

question 72

Multiple Choice

Excalibur Ltd.began operations on October 1 of the current year.Its production requires that direct materials are added at the beginning of the process and conversion costs are incurred uniformly.Direct materials costs for October were $380,000 and conversion costs were $1,750,000.There were 80,000 units started during the month.The ending inventory was 25,000 units which were 60% complete.The cost per equivalent unit for direct materials was

• A)$4.75.
• B)$15.20.
• C)$5.85.
• D)$5.43.
• E)$7.92.

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Definitions:

Consumption

is the act of using goods and services to satisfy needs or desires, often discussed in the context of consumer behavior in economics.

Earnings

The amount of money received by an individual or organization in return for labor or services provided, or from investments.

Utility Function

A mathematical model representing an individual's preference ordering over a set of goods or outcomes.

Consumption

Consumption refers to the use of goods and services by households. It is an important component of GDP and economic analysis.