Answer the Following Questions Using the Information Below

question 3

Multiple Choice

Answer the following questions using the information below:
Triboro Computer Systems, Inc., manufactures printer circuit cards. All direct materials are added at the inception of the production process. During January, the accounting department noted that there was no beginning inventory. Direct materials purchases totaled $200,000 during the month. Work-in-process records revealed that 8,000 card units were started in January, 4,000 card units were complete, and 3,000 card units were spoiled as expected. Ending work-in-process card units are complete in respect to direct materials costs. Spoilage is not detected until the process is complete.
-What are the respective direct material costs per equivalent unit, assuming spoiled units are recognized or ignored?

• A)$20.00; $35.00
• B)$25.00; $40.00
• C)$30.00; $45.00
• D)$35.00; $50.00

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Definitions:

Profit Maximizing Prices

Prices set by firms to maximize their profits, determined by the intersection of marginal cost and marginal revenue.

Marginal Revenue Function

A mathematical representation that shows how marginal revenue changes as the quantity of output is changed.

Dinner Special

A unique or discounted meal offered by a restaurant, typically for a limited time or occasion, often to attract customers or showcase new dishes.

Optimal Decision

The most efficient, profitable, or desirable decision given the available information, resources, and constraints.