Question: Link Company uses a process costing system and the weighted average method. During the year the company completed 1,500 units of product. Ending inventory consisted
Link Company uses a process costing system and the weighted average method. During the year the company
completed 1,500 units of product. Ending inventory consisted of 600 units that were 50% complete. The total dollar
cost associated with production of inventory was $104,500. The cost per equivalent unit is how much?
Stephenson Company is trying to decide which one of two contracts it will accept. The costs and revenues
associated with each are listed below:
Contract X
Contract Z
Contract Revenue
$
200.000
$
260,000
Materials
10,000
10,000
Labor
88.000
120,000
Depreciation on Equipment
8,000
10.000
Cost Incurred for Consulting Advice
1,500
1,500
Allocated Portion of Overhead
5.000
3.000
The equipment was purchased last year and has no resale value. Which of these amounts is relevant for the
selection of one contract over another?
O Contract revenue and labor costs
Cost of consulting advice and allocated overhead
O Materials, consulting advice, and allocated overhead
Contract revenue, labor costs, and depreciation on equipment
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts