Use the Information Below to Answer the Following Questions

question 6

Multiple Choice

Use the information below to answer the following questions:
The Adams Company uses a process costing system. During the current period, 1,600 units were started and 1,200 units were completed and transferred out. Ending units were 70% complete for materials and 35% complete for conversion costs. Direct materials costs added were $32,500 and conversion costs added were $31,400. There was no beginning WIP inventory and conversion costs are added evenly throughout the process.
-At the end of the period, the cost per equivalent unit for conversion costs for the Adams Company would be closest to

• A) $27.08.
• B) $23.43.
• C) $21.96.
• D) $26.17.

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Definitions:

Misuse

Incorrect, improper, or unlawful use of something that can lead to undesirable outcomes or harm.

Secret Information

Confidential or proprietary knowledge not disclosed or made available to the general public.

War Metaphors

Linguistic expressions that apply terms and concepts from military conflict to non-military situations, often to describe a business competition or personal struggle.

Business Leaders

Individuals who are in charge of guiding and making strategic decisions for organizations or companies.