Reference no: EM132547716

Question 1: Beginning work in progress in the assembly department of a company was 3,000 units, 50% completed. During the year, a total of 20,000 units were completed and delivered to customers. Ending work in progress was 5,000 units, with 80% completed with respect to conversion. What are the equivalent units for conversion, assuming the weighted-average method is used?

a) 22,500

b) 23,500

c) 24,000

d) 25,000

Question 2: Spencer Company expects to sell 60,000 units next year. Variable production costs are €5.25 per unit, and variable selling costs are 10% of the selling price. Fixed costs are €150,000 per year, and the company has set a target profit of €75,000. Based on this information, what should be the selling price per unit?

a) € 7.00

b) € 9.00

c) €10.00

d) €10.75

Question 3: During last year, Thor Lab supplied hospitals with a comprehensive diagnostic kit for €120. At a volume of 80,000 kits, Thor had fixed costs of €1,000,000 and net income of €200,000. Because of an adverse legal decision, Thor's liability insurance expenses this year will be €480,000 more than they were last year. Assuming that the volume and other costs are unchanged, what should be the price this year if Thor is to make the same €200,000 net income?

a) €120

b) €122

c) €124

d) €126