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

question 24

Multiple Choice

During July,the production department of a process operations system completed and transferred to finished goods 10,000 units that were in process at the beginning of July and 76,000 that were started and completed in July.July's beginning inventory units were 100% complete with respect to materials and 30% complete with respect to labor.At the end of July,15,000 additional units were in process in the production department and were 100% complete with respect to materials and 25% complete with respect to labor.The beginning inventory included labor cost of $52,100 and the production department incurred direct labor cost of $450,750 during July.Compute the direct labor cost per equivalent unit for the department using the weighted-average method.

• A)$1.72.
• B)$5.60.
• C)$0.84.
• D)$5.02.
• E)$5.85.

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Definitions:

Dissemination

The process of spreading information, knowledge, or ideas to a large number of people.

Executive Stock Option

A privilege, sold by one party to another, that gives the buyer the right, but not the obligation, to buy (call) or sell (put) a stock at an agreed-upon price within a certain period or on a specific date.

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and the government.

Preferred Stock

A type of stock that provides dividends to its holders before common stocks and has priority over common stock in the event of a liquidation.