Williams Company Computed Its Cost Per Equivalent Unit for Direct

question 174

Multiple Choice

Williams Company computed its cost per equivalent unit for direct materials to be $2.60 and its cost per equivalent unit for conversion to be $3.75. A total of 250,000 units of product were completed and transferred out as finished goods during the month, and 36,000 of equivalent units remained unfinished at the end of the month. The amount that should be reported in Finished Goods Inventory is:

• A) $135,000.
• B) $1,816,100.
• C) $228,600.
• D) $1,587,500.
• E) $650,000.

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Definitions:

Meristematic Tissue

Plant tissue consisting of undifferentiated cells capable of continuous division, responsible for growth and regeneration.

Sclerenchyma

Cells that provide strength and support in the plant body, are often dead at maturity, and have extremely thick walls; includes fibers and sclereids.

Phloem

The vascular tissue in plants that conducts sugars and other metabolic products downward from the leaves.

Xylem

A type of vascular tissue in plants that transports water and dissolved minerals from the roots to the rest of the plant.