The Adams Company Uses a Process System

question 174

Multiple Choice

The Adams Company uses a process 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 direct materials would be closest to:

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

---

Definitions:

Legislative Rules

Regulations established by a governmental or administrative entity to guide the operation and procedures of legislative bodies.

Cabinet-Level Departments

Senior executive departments within the government that are led by cabinet secretaries, who are appointed by the president and confirmed by the Senate.

Advice and Consent

A constitutional mechanism in which a legislative body must approve certain actions or decisions made by the executive branch or its representatives.

Administrative Head

The Administrative Head is the lead official in charge of managing and overseeing the operations of an organization or department.