Colil Computer Systems, Inc

question 110

Multiple Choice

Colil Computer Systems, Inc., manufactures printer circuit cards. All direct materials are added at the inception of the production process. During January, the accounting department noted that there was no beginning inventory. Direct materials purchases totaled $300,000 during the month. Work-in-process records revealed that 10,000 card units were started in January, 5,000 card units were complete, and 4,000 card units were spoiled as expected. Ending work-in-process card units are complete in respect to direct materials costs. Spoilage is not detected until the process is complete.
-What is the direct material cost per equivalent unit?

• A) $20.00
• B) $30.00
• C) $25.00
• D) $35.00

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Definitions:

Equilibrium Quantity

The quantity of goods or services traded in a market at the equilibrium price, where supply equals demand.

Demand for Bottled Water

Refers to the consumer need or desire to purchase bottled water, influenced by factors like health concerns, convenience, and taste preferences.

Substitute Product

A product that can be used in place of another, fulfilling the same needs or desires.

Chicken Prices

The market value or cost of chicken, which can fluctuate based on factors like demand, feed prices, and production costs.