Goody Company Adds Direct Materials at the Beginning of the Process

question 195

Multiple Choice

Goody Company adds direct materials at the beginning of the process and adds conversion costs throughout the process.Data for the finishing department follows: $\begin{array}{|l|r|}\hline \text { WIP, Apri 1 } & 12,000 \text { units } \\\hline \text { Transferred-in costs in WIP, April 1 } & \$ 78,940 \\\hline \text { Direct materials (100\%) in WIP, Apri 1 } & \$ 22,420 \\\hline \text { Conversion costs (70\%) in WIP, Apri 1 } & \$ 21,385 \\\hline \text { Units transferred-in } & 45,000 \\\hline \text { Transferred-in costs during April } & \$ 540,900 \\\hline \text { Units completed } & 42,000 \\\hline \text { April direct materials cost } & \$ 157,500 \\\hline \text { April conversion costs } & \$ 230,837 \\\hline \text { WIP, Apri 30 } & 15,000 \text { units } \\\hline \text { (100\% for materials and } 60 \% \text { for conversion } \\\text { costs) }\\\hline\end{array}$

- The cost per equivalent unit for conversion costs would be closest to:

• A)$4.80.
• B)$4.42.
• C)$4.95.
• D)$5.13.

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Definitions:

Self-report Inventory

A personality assessment technique in which subjects answer questions about their behaviors and feelings.

Socially Desirable

Pertaining to behaviors or attitudes that are deemed acceptable and desirable by society, often influencing individuals to act in certain ways to gain social approval.

Test-taker

An individual who participates in an examination or assessment to evaluate their knowledge, skills, competencies, or physical condition.

Correlational Method

A statistical technique that measures the degree of the relationship between two variables, expressed by the correlation coefficient.