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

question 92

Multiple Choice

Use the information below to answer the following question(s) .Father Time Clock Shop manufactures clocks on an automated assembly line.It utilizes two cost categories: direct materials and conversion costs.Each product must pass through the Assembly Department and the Testing Department.Direct materials are added at the beginning of production, while conversion costs are allocated evenly throughout production, and the company uses weighted-average costing.Data for the Assembly Department are:

-What is the direct materials cost per equivalent unit during June at Father Time Clock Shop?

• A)$982.92
• B)$1,226.61
• C)$952.38
• D)$1,123.81
• E)$1,000.00

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Definitions:

Economic Profits

The surplus remaining after total costs are subtracted from total revenues, taking into account both explicit and implicit costs.

Accounting Profits

The difference between total revenue and explicit costs; the net income a firm reports on its income statement.

Total Costs

The aggregate of all expenses associated with manufacturing products or services, which includes fixed and variable costs.

Most Efficient Output

The level of production at which a firm achieves the lowest possible cost per unit, maximizing productivity and minimizing waste.