Answer the Following Questions Using the Information Below

question 281

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.
Data for the Assembly Department for April 2018 are:

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

• A)$1250.00
• B)$900.00
• C)$581.25
• D)$575.00

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Definitions:

Lava Flows

Streams of molten rock that pour out of a volcano during an eruption.

Injected Magma

Magma that has been forcefully inserted into cracks, fissures, or between layers of existing rock, often leading to the formation of igneous intrusions.

SO2 Content

The concentration of sulfur dioxide, a significant air pollutant and volcanic gas, present in the atmosphere or emitted by various sources.

Gas Pressure

The force exerted by a gas per unit area on the walls of its container.