During April, the Production Department of a Process Operations System

question 169

Multiple Choice

During April, the production department of a process operations system completed and transferred to finished goods 18,000 units that were in process at the beginning of April and 90,000 units that were started and completed in April. April's beginning inventory units were 100% complete with respect to materials and 40% complete with respect to labor. At the end of April, 30,000 additional units were in process in the production department and were 100% complete with respect to materials and 60% complete with respect to labor. The beginning inventory included materials cost of $107,000 and the production department incurred direct materials cost of $329,000 during the month. Compute the direct materials cost per equivalent unit for the department using the weighted-average method.

• A) $2.57.
• B) $4.03.
• C) $3.05.
• D) $3.16.
• E) $2.38.

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Definitions:

Target Market

A specific group of potential customers at whom a company aims its products or services.

End-user Products

Final goods or services intended for consumption or use by the ultimate consumer, as opposed to intermediate goods used in production.

Not-for-profit Organizations

Entities that operate for purposes other than making a profit, often focusing on social, educational, or charitable objectives.

Marketing Segmentation

The practice of dividing a broad target market into subsets of consumers with common needs, characteristics, or behaviors, and targeting them with specific marketing strategies.