Eclypso Inc

question 15

Multiple Choice

Eclypso Inc.manufactures a product that passes through two processes: mixing and molding.All manufacturing costs are added uniformly in the mixing department. Information for the mixing department for October is as follows:

During October, 38,400 units were completed and transferred to the molding department.The following costs were incurred by the mixing department during October:


- By October 31, the 3,600 units that were 85% complete remained in mixing department.Eclypso uses the weighted average method.Which of the following is the total cost per equivalent unit of production? (Note: Round answer to two decimal places)

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Definitions:

Order Cost

The administrative and logistical expenses associated with making and processing an order for goods or services.

Economic Order Quantity

An inventory management formula that determines the ideal order size to minimize the costs of holding and ordering inventory.

Variable Cost

Variable cost refers to expenses that change in proportion to the activity of a business, such as costs for raw materials or production that increase or decrease based on the volume of production.