Use the Information Below to Answer the Following Question(s)

question 114

Multiple Choice

Use the information below to answer the following question(s) .Craft Concept manufactures small tables in its Processing Department.Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit.Conversion costs are incurred evenly throughout the production cycle.Before inspection, some units are spoiled due to non-detectable materials defects.Inspection occurs at the end of the process.Spoiled units generally constitute 5 percent of the good units.Data for December are as follows:

-What is the total cost per equivalent unit using the weighted-average method of process costing?

• A)$3.00
• B)$3.60
• C)$4.60
• D)$6.60
• E)$6.90

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Definitions:

Note Receivable

A written promise for amounts to be received by a business, typically including interest, from another party.

Impaired Value

The condition in which the market value of an asset is less than its carrying value on the balance sheet.

Interest Revenue

Income earned by an entity through lending funds or depositing funds in interest-bearing accounts.

Warrants

Securities that grant the holder the right to purchase a company's stock at a specific price before the warrant expires, similar to stock options but typically with longer durations.