Williams Company Computed Its Cost Per Equivalent Unit for Direct

question 25

Multiple Choice

Williams Company computed its cost per equivalent unit for direct materials to be $2.60 and its cost per equivalent unit for conversion to be $3.75.A total of 250,000 units of product were completed and transferred out as finished goods during the month.The ending Work in Process inventory consists of 36,000 equivalent units of direct materials and 36,000 equivalent units of conversion costs.The amount that should be reported in ending Work in Process Inventory is:

• A)$93,600.
• B)$135,000.
• C)$1,816,100.
• D)$1,587,500.
• E)$228,600.

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Definitions:

Net Seller

An individual or entity that sells more than it purchases in a given market, often resulting in a net inflow of funds.

Net Buyer

An entity or individual that purchases more of a commodity or asset than they sell in a specific period.

Normal Goods

Goods for which demand increases when consumer income increases, and falls when consumer income decreases, all else being equal.

Wage Rate

The amount of money that is paid to a worker for a specified quantity of labor, usually expressed per hour or piece of work done.