Gholson Ltd Employs a Process Costing System in Which Direct

question 63

Multiple Choice

Gholson Ltd employs a process costing system in which direct materials are added at the beginning of the process. Direct material costs from the prior period for beginning work in process are $1,250. The current period's direct material costs total $31,500. The company began the period with 500 units, 70% complete, started 10,500 units, and finished the period with 1,000 units, 40% complete. Using a FIFO system, the direct material cost per equivalent unit is

• A) $3.00
• B) $2.98
• C) $3.20
• D) $2.55

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Definitions:

AND Logic

A fundamental logic operation where the output is true only if all the inputs are true, used in computing and digital circuits.

Contacts

Electrical components that physically connect two points in a circuit, allowing electricity to flow, or in software applications, they refer to information records for individuals or organizations.

Output Instructions

Commands in programming languages or PLCs that control the output actions or devices, based on logic or conditions.

Scan Time

The time taken by a PLC to read all inputs, execute the program, and update the outputs in one complete cycle.