Excalibur Ltd

question 98

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 conversion was

• A)$25.00.
• B)$21.88.
• C)$70.00.
• D)$116.67.
• E)$16.67.

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Definitions:

Time-Driven

Refers to activities or systems where performance or output is measured in relation to the amount of time taken to complete them.

Activity-Based Costing

Accounting practice that assigns costs to products or services based on the precise resources they consume, offering more accuracy in costing.

Receiving Calls

The action or process of answering or accepting incoming telephone calls.

Time-Driven

Refers to a method or model that bases calculations, decisions, or processes on the passage of time, often focusing on efficiency and scheduling.