During December,the Production Department of a Process Operations System Completed

question 141

Multiple Choice

During December,the production department of a process operations system completed and transferred to finished goods a total of 65,000 units of product.At the end of March,15,000 additional units were in process in the production department and were 80% complete with respect to materials.The beginning inventory included materials cost of $57,500 and the production department incurred direct materials cost of $183,000 during December.Compute the direct materials cost per equivalent unit for the department using the weighted-average method.

• A)$3.70.
• B)$2.38.
• C)$2.82.
• D)$3.12.
• E)$4.79.

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Definitions:

Agreement On Price

A mutual understanding or contract between parties regarding the cost of goods or services.

Contract

An accord between two or more entities that carries legal obligations and is enforceable.

Substantive Unconscionability

A principle in contract law that allows courts to refuse to enforce a contract or clause deemed to be so unfair or unjust towards a party that it is oppressive.

Mirror Image Rule

A principle in contract law stating that an offer must be accepted exactly without modifications; any changes negate the original offer and create a counteroffer.