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.

---

Definitions:

Accuracy

The degree to which the result of a measurement, calculation, or specification conforms to the correct value or standard.

Dry Objectives

Optical lenses used in light microscopy that do not require immersion oil for viewing specimens.

Magnification

The process of enlarging the appearance of an object, typically using optical instruments.

Medical Practice

The work or profession of a medical practitioner, involving the treatment of patients.