Singh Enterprises Manufactures Picture Frames $$\begin{array} { | l | l | } \hline \text { Assembly } & \$ 9700 \\\hline \text { Finishing } & \$ 2250 \\\hline\end{array}$$

question 133

Multiple Choice

Singh Enterprises manufactures picture frames.Its production operations are divided into two departments - Assembly and Finishing.The company uses a process costing system.Singh incurred the following costs during the year to produce 6000 picture frames: $$\begin{array} { | l | l | } \hline \text { Assembly } & \$ 9700 \\\hline \text { Finishing } & \$ 2250 \\\hline\end{array}$$ If Singh can only sell 5100 picture frames during the year,what will be the cost per unit of the picture frames produced? (Round your answer to the nearest cent.)

• A) $2.34
• B) $1.99
• C) $1.62
• D) $1.90

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the asset's wear and tear or obsolescence.

Depreciation Produces

An accounting process that allocates the cost of a tangible asset over its useful life, thus producing a systematic reduction in value to reflect wear and tear or obsolescence.

Decreasing Expense

Expenses that diminish over time, typically due to cost-cutting measures, operational efficiencies, or depreciation methods.

Expense Recognition Principle

An accounting principle that dictates expenses should be recognized in the same period as the revenues they helped to generate, ensuring financial statements accurately reflect business activities.