Answer the Following Questions Using the Information Below

question 96

Multiple Choice

Answer the following questions using the information below:
The Townsend Tractor Company manufactures small garden tractors on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each tractor must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Townsend Tractor uses weighted-average costing.

-What is the conversion cost per equivalent unit in April?

• A) $1,250.00
• B) $900.00
• C) $575.00
• D) $581.25
• E) $1,241.94

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Definitions:

Household Workers

Individuals employed within a private home to perform domestic tasks, such as cleaning, cooking, and childcare.

Quarterly 941 Return

A quarterly tax form employers file to report federal withholdings and Social Security and Medicare taxes for employees.

Annual 940 Return

The Annual 940 Return is a federal tax form used by employers to report their annual Federal Unemployment Tax Act (FUTA) tax.

Safe Harbor

Safe Harbor is a provision in law or regulation that provides protection from penalty or liability under specific situations or if certain conditions are met.