At Davide Corporation,direct Materials Are Added at the Beginning of the Process

question 172

Multiple Choice

At Davide Corporation,direct materials are added at the beginning of the process and conversions costs are uniformly applied.Other details include: $\begin{array}{|l|r|}\hline \text { WIP beginning ( } 60 \% \text { for conversion) } & 17,500 \text { units } \\\hline \text { Units started } & 114,500 \text { units } \\\hline \text { Units completed and transferred out } & 111,700 \text { units } \\\hline \text { WIP ending ( } 30 \% \text { for conversion) } & 20,300 \text { units } \\\hline \text { Beginning WIP direct materials } & \$ 22,300 \\\hline \text { Beginning WIP conversion costs } & \$ 19,700 \\\hline \text { Costs of materials added } & \$ 370,000 \\\hline \text { Costs of conversion added } & \$ 280,000 \\\hline\end{array}$

-What is the cost per equivalent unit for conversion costs?

• A)$2.45
• B)$2.27
• C)$2.54
• D)$2.38

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Definitions:

Families

Social units consisting of groups of individuals related by blood, marriage, or adoption, forming a primary societal group for nurturing and socializing members.

Percentage Of Total Income

A metric that expresses an individual's, sector's, or group's income as a fraction of the overall income earned within a larger entity, such as a country.

Bottom 20%

The bottom 20% typically refers to the lowest quintile in a distribution, such as income levels, often used to describe those with the lowest earnings.

Families

Groups of individuals related by blood, marriage, or adoption who live together and share economic, emotional, and social ties.