Tong Ltd Is a Manufacturing Company That Uses a Process

question 30

Multiple Choice

Tong Ltd is a manufacturing company that uses a process costing system. All direct material is added at the start of the process, and spoilage is discovered at the end. During the first period of operations 15,000 units of material were placed into production at a cost of $20 each (ignore conversion costs for this process) . Ending work in process was 2,000 units, good units completed totaled 11,000 units, and normal spoilage is 15% of the units surviving inspection. Inspection takes place after the units are completed. The unit cost assigned to the ending work in process inventory is

• A) $-0-
• B) $22.61
• C) $20.00
• D) $24.00

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Definitions:

Risk-Free Rate

The theoretical rate of return on an investment with no risk of financial loss, often represented by government bonds.

Unsystematic Risk

The type of risk that is specific to a company or industry, stemming from factors like management decisions or regulatory changes, and can be mitigated through diversification.

Limited Number

A restricted quantity, usually referring to a specific allocation or issuance of items, resources, or opportunities.

Standard Deviation

A measure of the dispersion or variability of a set of data points from their mean, used in statistics to quantify the amount of variation or dispersion of a dataset.