Wilson Company Has a Process Costing System

question 53

Multiple Choice

Wilson Company has a process costing system. The Assembly Department had the following costs for May:
-Assume that Wilson uses the FIFO method,and that for May the company computed 16,000 equivalent units for materials.The cost per equivalent unit for materials for the month would have been:

• A)$12.50
• B)$3.00
• C)$5.00
• D)$9.50

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Definitions:

Magnuson-Moss Act

The Magnuson-Moss Warranty Act is a federal law that governs consumer product warranties in the United States, ensuring that manufacturers provide clear and detailed warranty information.

Written Warranty

A guarantee provided in written form by the maker or seller of a product, ensuring the product's condition, quality, or performance for a specified period.

Full Warranty

A comprehensive warranty that covers repair or replacement of any defect in a product during the warranty period.

Implied Warranty

A legal assumption that a product will perform as expected without explicit statements by the seller regarding its quality or performance.