Evanston Manufacturing,Inc What Was the Unit Product Cost? (Round Your Answer to |

question 163

Multiple Choice

Evanston Manufacturing,Inc.reported the following information for the year: $$\begin{array} { | l | r | } \hline \text { Number of Units Produced } & 153,000 \\\hline \text { Number of Units Sold } & 62,000 \\\hline \text { Cost of Goods Manufactured } & \$ 268,000 \\\hline \text { Cost of Goods Sold } & 52,600 \\\hline \text { Sales Revenue } & 132,000 \\\hline \text { Gross Profit } & 73,520 \\\hline \text { Operating Expense } & 727,000 \\\hline\end{array}$$
What was the unit product cost? (Round your answer to the nearest cent.)

• A) $4.32
• B) $0.86
• C) $0.85
• D) $1.75

Appreciate the qualitative characteristics of useful financial information.

Understand the difference between fundamental and enhancing qualitative characteristics.

Comprehend the importance of the going concern assumption in financial reporting.

Recognize the cost constraint in providing financial information.

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Definitions:

Prepaid Item

An expense paid in advance and recorded as an asset until it is actually used or consumed.

Adjusting Entry

Financial records established at the conclusion of an accounting term to assign earnings and costs to the period they truly belong.

Insurance Expense

The cost incurred by a business or individual for purchasing insurance policies to protect against potential losses or liabilities.

Prepaid Insurance

An asset account that represents insurance expenses paid in advance and is recognized as an expense over the period the insurance contract covers.