At OxyCorp,direct Materials Are Added at the Beginning of the Process

question 209

Multiple Choice

At OxyCorp,direct materials are added at the beginning of the process and conversions costs are uniformly applied.Other details include: $\begin{array}{|l|r|}\hline \text { WIP beginning ( } 55 \% \text { for conversion) } & 13,700 \text { units } \\\hline \text { Units started } & 125,000 \text { units } \\\hline \text { Units completed and transferred out } & 116,500 \text { units } \\\hline \text { WIP ending ( } 35 \% \text { for conversion) } & 22,200 \text { units } \\\hline \text { Beginning WIP direct materials } & \$ 50,300 \\\hline \text { Beginning WIP conversion costs } & \$ 22,500 \\\hline \text { Costs of materials added } & \$ 412,000 \\\hline \text { Costs of conversion added } & \$ 301,000 \\\hline\end{array}$
- What is the cost per equivalent unit for direct materials?

• A)$3.55
• B)$3.72
• C)$3.33
• D)$2.97

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Definitions:

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Mistake Of Value

A misunderstanding about the significance, worth, or value of something involved in a contract, which may affect the validity of the contract.

Mutual Mistake

A situation in contract law where all parties involved have an incorrect belief about a vital fact at the time of entering into a contract.

Unilateral Mistake

An error made by one party in a contract that is not shared by the other party, potentially affecting the contract's validity.