The Assembly Department of Protocol,Inc

question 119

Multiple Choice

The Assembly Department of Protocol,Inc.,manufacturer of computers,incurred $280,000 in direct material costs and $70,000 in conversion costs.The equivalent units of production for direct materials and conversion costs are 1000 and 900,respectively.The weighted-average method is used.The cost per equivalent unit of production for direct materials is ________.(Round your answer to the nearest cent.)

• A) $77.78
• B) $70.00
• C) $311.11
• D) $280.00

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Definitions:

Marginal Revenue

The additional revenue that is gained from selling one more unit of a product or service.

Marginal Cost

Expenses incurred from making one more unit of a product or service.

Average Revenue

The mean amount of money earned per unit sold, calculated by dividing the total revenue by the quantity of units sold.

Marginal Revenue

The additional income gained from selling one more unit of a product.