Department C of Boot and Shoe Company
Information Concerning Department

question 87

Multiple Choice

Department C of Boot and Shoe Company
Information concerning Department C of Boot and Shoe Company for the month of March is as follows: Materials
$\begin{array}{lll}&\text { Units }&\text { Cost }\\\text { Work-in-Process Inventory, beginning of month } & 20,000 & \$ 14,250 \\\text { Started in March } & 85,000 & \$ 66,600 \\\text { Units completed } & 90,000 & \\\text { Work-in-Process Inventory, end of month } & 15,000 &\end{array}$ All materials are added at the beginning of the process.
-Refer to Department C of Boot and Shoe Company. What would be the cost (rounded to two decimal places) per equivalent unit for materials when using the first-in, first-out method?

• A) $0.74
• B) $0.77
• C) $0.78
• D) $0.90

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Definitions:

Last-Resort Lending Agency

An institution, typically a country's central bank, that offers loans to banks or other eligible institutions that are experiencing financial difficulty or are considered highly risky.

Natural Resources

Resources that are found in nature and can be used for economic gain, such as minerals, forests, water, and fertile land.

Economic Growth

An increase in the production of goods and services in an economy over a period, often measured by the rise in the gross domestic product (GDP).

Corruption

The abuse of entrusted power for private gain, which can occur in both the public and private sectors.