The Adams Company Uses a Process System

question 6

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 conversion costs would be closest to:

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

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Definitions:

Buffer

A means or mechanism that reduces the impact of external changes or stresses, maintaining stability in a system or process.

Stress

A physical, mental, or emotional reaction to external pressures or demands that can affect an individual's overall sense of well-being.

Stress Related Disease

Health conditions that are directly or indirectly caused by or exacerbated by stress.

Social Support

Refers to the perception and actuality that one is cared for, has assistance available from other people, and is part of a supportive social network.