Colil Computer Systems, Inc

question 15

Multiple Choice

Colil Computer Systems, Inc., manufactures printer circuit cards. All direct materials are added at the inception of the production process. During January, the accounting department noted that there was no beginning inventory. Direct materials of $301,000 were used in production during the month. Work-in-process records revealed that 12,000 card units were started in January, 6000 card units were complete, and 4000 card units were spoiled as expected. Ending work-in-process card units are complete in respect to direct materials costs. Spoilage is not detected until the process is complete.
What is the direct material cost assigned to good units completed? (Please round interim calculations to the nearest cent, and final calculations to the nearest whole dollar.)

• A) $150,480
• B) $258,000
• C) $100,320
• D) $250,800

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Definitions:

Karl Marx

A 19th-century philosopher, economist, and revolutionary socialist who developed the theory of Marxism.

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indicates a loss that has occurred on paper due to a decrease in the market value of an investment, but has not yet been realized through a sale.

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Markets where shares of publicly held companies are issued and traded, serving as a platform for buying and selling stocks.

Milton Friedman

An influential American economist known for his strong belief in free-market capitalism and for challenging Keynesian economics.