The Following Are Costs for a Selected Period: Direct Materials

question 158

Multiple Choice

The following are costs for a selected period: direct materials put into production,$94,000; direct labor cost of converting materials into product,$200,000; total indirect costs of manufacturing the product,$40,000.What is the per unit cost of manufacturing 20,000 units in this period?

• A) $4.70
• B) $16.70
• C) $8.70
• D) $12.70

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Definitions:

Earnings per Share

A company's profit divided by its number of common outstanding shares.

Weighted-average Shares

A calculation used in financial reporting that adjusts the number of outstanding shares for their time outstanding during the calculation period.

Retained Earnings

Earnings accumulated by a company thus far, after subtracting any dividends or distributions made to shareholders.

Price-earnings Ratio

A valuation metric for companies, representing the ratio of a company's share price to its per-share earnings.