A Company Starts Work on 1000 Physical Units and Completes

question 64

Multiple Choice

A company starts work on 1000 physical units and completes 75 per cent of conversion activity. The costs are $1500 for conversion and $5000 for direct material. What is the cost per equivalent unit for direct material?

• A) $10.00 per unit
• B) $5.00 per unit
• C) $6.00 per unit
• D) $6.67 per unit

---

Definitions:

Copyright Holder

The individual or entity that legally possesses the exclusive rights to reproduce, distribute, perform, or display a specific work.

Patent Law

Patent law is a legal framework governing the protection of inventions, allowing inventors exclusive rights to their creations for a limited period.

Copyrighted Material

Works such as literature, music, and art that are protected by copyright law, preventing unauthorized use.

Passing-Off Action

A legal remedy used in trademark law to protect the goodwill associated with unregistered trademarks from being exploited by others.