The Bakersfield Company Has the Following Information Available At the Beginning of the Period, There Were 800 Units

question 38

Multiple Choice

The Bakersfield Company has the following information available: $\begin{array}{|l|l|l|}\hline & \text { Costs from Begiuning Inventory } & \text { Costs from Current Period } \\\hline \text { Direct materials } & \$ 3,650 & \$ 31,620 \\\hline \text { Conversion costs } & 9,120 & 143,100 \\\hline \end{array}$
At the beginning of the period, there were 800 units in process that were 60 percent complete as to conversion costs and 100 percent complete as to direct materials costs. During the current period, 5,800 units were started and completed. Ending inventory contained 400 units that were 60 percent complete as to conversion costs and 100 percent complete as to direct materials costs. (Assume that the company uses the FIFO process costing method.)
-
The cost of completing a unit during the current period was

• A) $30.12.
• B) $27.60.
• C) $28.18.
• D) $24.96.

---

Definitions:

Capital Intensity Ratio

The Capital Intensity Ratio is a financial metric that measures the amount of investment in capital assets required to generate one dollar of revenue.

Total Asset Turnover Ratio

A financial metric used to assess a company's efficiency in using its assets to generate sales or revenue.

Net Fixed Assets

The value of a company's fixed assets minus depreciation, representing the actual value of the assets in use.

Financial Leverage

The use of borrowed money (debt) to amplify potential returns from an investment or project.