[The Following Information Applies to the Questions Displayed Below

question 51

Multiple Choice

[The following information applies to the questions displayed below.]
During May,the number of equivalent units of materials applied to units produced by Department Q totaled 48,000,computed as follows: beginning inventory,5,000 equivalent units;units started and completed in May,37,000 equivalent units;and ending inventory,6,000 equivalent units.
-Assuming that the cost of direct materials used by Department Q in May was $440,000,the materials cost assigned to unfinished units at May 31 would be: (Do not round intermediate calculations. )

• A)$55,000.
• B)$26,400.
• C)$70,400.
• D)Impossible to determine unless we know the percentage of completion for ending inventory units.

Grasp the concept of projected benefit obligation versus accumulated benefit obligation and their respective impacts on pension accounting.

Recognize the significance of actuarial assumptions and their effect on pension costs and obligations.

Identify the components of net periodic pension expense and the exclusion of certain items.

Understand the role of the Internal Revenue Code in pension plan design and the taxation of contributions and benefits.

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Definitions:

Average Cost

The total cost of production divided by the number of goods produced, serving as a measure of cost efficiency in production.

Price-Taker Market

A market situation where individual buyers or sellers have no power to influence the price at which they buy or sell goods or services.

Economic Losses

Financial losses suffered by an entity, often resulting from poor investment decisions, market downturns, or operational inefficiencies.

Economies of Scale

Reductions in the firm’s per-unit costs associated with the use of large plants to produce a large volume of output.