Last Year Quest Company Incurred the Following Costs:
Quest Produced

question 57

Multiple Choice

Last year Quest Company incurred the following costs:
Quest produced and sold 2,000 units at a sales price of $125 each. Assume that beginning and ending inventories of materials, work in process, and finished goods were 0.
$$\begin{array} { l r } \text { Direct materials } & \$ 40,000 \\\text { Direct labour } & 60,000 \\\text { Overhead } & 90,000 \\\text { Selling expenses } & 24,000 \\\text { Administrative expenses } & 22,000\end{array}$$
-Refer to the Figure.What was the conversion cost per unit?

• A)$50
• B)$75
• C)$95
• D)$125

Recognize the components of the shareholders' equity section in financial statements.

Analyze the impact of financial decisions on shareholders' equity.

Identify the reporting requirements for earnings per share under different accounting standards.

Grasp the concept and financial effect of a retained earnings restriction.

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Definitions:

After-Tax Income

The amount of net income left after all taxes have been deducted, representing the actual income available to the individual or business.