Axel Ltd. began operations on October 1 of the current year. Its production requires that direct materials be added at the beginning of the process, and conversion costs are incurred uniformly. Direct materials costs for October were $380,000, and conversion costs were $1,750,000. There were 80,000 units started during the month. The ending inventory was 25,000 units, which were 60% complete. What was the cost per equivalent unit for conversion? Round to the nearest cent. OA. $70.00 OB. $25.00 O C. $21.88 OD. $16.67 OE. $116.67

Axel Ltd. began operations on October 1 of the current year. Its production requires that direct materials be added at the beginning of the process, and conversion costs are incurred uniformly. Direct materials costs for October were $380,000, and conversion costs were $1,750,000. There were 80,000 units started during the month. The ending inventory was 25,000 units, which were 60% complete. What was the cost per equivalent unit for conversion? Round to the nearest cent. OA. $70.00 OB. $25.00 O C. $21.88 OD. $16.67 OE. $116.67

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

Axel Ltd. began operations on October 1 of the current year. Its production requires that direct materials be added at the beginning of the process, and conversion costs are incurred uniformly. Direct
materials costs for October were $380,000, and conversion costs were $1,750,000. There were 80,000 units started during the month. The ending inventory was 25,000 units, which were 60%
complete. What was the cost per equivalent unit for conversion? Round to the nearest cent.
OA. $70.00
OB. $25.00
OC. $21.88
O D. $16.67
OE. $116.67

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