During July, the Production Department of a Process Operations System

question 54

Multiple Choice

During July, the production department of a process operations system completed and transferred to finished goods 10,000 units that were in process at the beginning of July and 76,000 that were started and completed in July. July's beginning inventory units were 100% complete with respect to materials and 30% complete with respect to labor. At the end of July, 15,000 additional units were in process in the production department and were 100% complete with respect to materials and 25% complete with respect to labor. The beginning inventory included labor cost of $52,100 and the production department incurred direct labor cost of $450,750 during July. Compute the direct labor cost per equivalent unit for the department using the weighted-average method.

• A) $1.72.
• B) $5.85.
• C) $0.84.
• D) $5.60.
• E) $5.02.

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Definitions:

Concessions

Compromises made in negotiations where one party gives up certain demands or conditions.

Good Faith

Good Faith involves engaging in actions or negotiations with honesty, integrity, and sincerity without any intention to deceive or defraud.

Increasing Resources

The act of adding more resources such as time, money, or manpower to a project or work environment to enhance productivity or efficiency.

Precise Rules

Clearly defined and strict guidelines or regulations that must be followed to ensure a certain outcome or maintain order.