Excalibur Ltd

question 72

Multiple Choice

Excalibur Ltd.began operations on October 1 of the current year.Its production requires that direct materials are added at the beginning of the process and conversion costs are incurred uniformly.Direct materials costs for October were $380,000 and conversion costs were $1,750,000.There were 80,000 units started during the month.The ending inventory was 25,000 units which were 60% complete.The cost per equivalent unit for direct materials was

• A)$4.75.
• B)$15.20.
• C)$5.85.
• D)$5.43.
• E)$7.92.

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Definitions:

Compound Interest

Interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.

Initial Deposit

The upfront payment made to open an account or initiate an investment, serving as the first financial transaction in a series.

Infinite Geometric Series

A series of numbers in which the ratio of each term to its preceding term is constant, and the number of terms is infinite.

Terms

Conditions and stipulations that are agreed upon in a contract or agreement between parties.