During March, the Production Department of a Process Operations System

question 168

Multiple Choice

During March, the production department of a process operations system completed and transferred to finished goods 25,000 units that were in process at the beginning of March and 110,000 that were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to labor. At the end of March, 30,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to labor. The production department incurred direct labor cost of $578,900 and its beginning inventory included labor cost of $54,700. Compute the direct labor cost per equivalent unit for the department using the weighted-average method.

• A) $4.86.
• B) $4.28.
• C) $3.84.
• D) $4.40.
• E) $4.69.

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Definitions:

Strategic Alternative

Various options or plans that an organization can pursue to achieve its goals and objectives.

Strategic Failure

The inability of an organization to achieve its strategic objectives due to flawed planning, execution, or external factors.

The Reactor

A strategy used by organizations that only respond to environmental changes or pressures rather than anticipating them or actively seeking to influence them.

The Prospector

A type of strategic business model focused on innovation, exploring new markets, and seeking out new opportunities, often characterized by flexibility and a willingness to take risks.