The Jordan Corporation Uses Raw Material a in a Manufacturing

question 59

Multiple Choice

The Jordan Corporation uses Raw Material A in a manufacturing process.Information as to balances on hand,purchases,and requisitions of Raw Material A is given in the following table. Raw Material A If a perpetual inventory record of Raw Material A is maintained on a moving average basis,the 140 units issued on March 16 will have a unit cost of (round to 3 decimal places) :

• A)$1.525.
• B)$1.475.
• C)$1.50.
• D)$1.438.

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the sensitivity of consumers to price changes.

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded for it at those prices, typically downward sloping.

Law of Diminishing

A principle that states the incremental utility or benefit gained from consuming additional units of a good or service tends to decrease with each additional unit consumed.

Marginal Utility

The additional utility, or satisfaction, derived from consuming an additional unit of a good.