A Company Uses a Process Costing System

question 143

Multiple Choice

A company uses a process costing system. Its Assembly Department's beginning inventory consisted of 30,000 units, 75% complete with respect to direct labor and overhead. The department completed and transferred out 127,500 units this period. The ending inventory consists of 20,000 units that are 25% complete with respect to direct labor and overhead. All direct materials are added at the beginning of the process. The department incurred direct labor costs of $24,000 and overhead costs of $32,000 for the period. Assuming the weighted average method, the direct labor cost per equivalent unit (rounded to the nearest cent) is:

• A) $0.16.
• B) $0.18.
• C) $0.14.
• D) $0.30.
• E) $0.37.

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Definitions:

Exercise

Exercise is any bodily activity that enhances or maintains physical fitness, overall health, and wellness, often involving repeated movements to improve strength, endurance, or flexibility.

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Expiratory Phase

The part of the breathing cycle when air is expelled from the lungs.

Chamber

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