The Debits to Work in Process--Assembly Department for April, Together

question 32

Multiple Choice

The debits to Work in Process--Assembly Department for April, together with data concerning production, are as follows: All direct materials are placed in process at the beginning of the process and the first-in, first-out method is used to cost inventories. The materials cost per equivalent unit for April is:

• A) $2.48
• B) $2.08
• C) $2.50
• D) $5.25

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Definitions:

Profit

The financial gain realized when the amount of revenue earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Profit Margin

The amount by which revenue from sales exceeds costs in a business, expressed as a percentage.

Sales-Oriented

A business approach focused primarily on generating sales regardless of customer needs or the longer-term company interests.

Objective

A specific, measurable, attainable, relevant, and time-bound goal that an individual or organization aims to achieve.