Timekeeper Inc

question 12

Multiple Choice

Timekeeper Inc.manufactures clocks on a highly automated assembly line.Its costing system uses two cost categories,direct materials and conversion costs.Each product must pass through the Assembly Department and the Testing Department.Direct materials are added at the beginning of the production process.Conversion costs are allocated evenly throughout production.Timekeeper Inc.uses weighted-average costing.
Data for the Assembly Department for June 2017 are:


Costs for June 2017:

What is the direct materials cost per equivalent unit during June?

• A)$679.51
• B)$519.40
• C)$504.71
• D)$409.86

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Definitions:

Future Expected Gains

The anticipated benefits or profits that are expected to be realized in the future from investments or decisions made today.

Present Expenditures

Current spending or outflows of money, usually referring to the costs or expenses a business or individual faces at the moment.

MU (Marginal Utility)

The augmented utility or pleasure achieved by consuming an extra unit of a good or service.

Marginal Cost

The outlay required to produce another unit of a product or service.