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Mack, Inc., uses a weighted-average process costing system. Direct materials and conversion costs are incurred evenly during the production process. During the month of October, the following costs were incurred:
Direct materials $39,700
Conversion costs 70,000
The work-in-process inventory as of October 1 consisted of 5,000 units, valued at $4,300, that were 20% complete. During October, 27,000 units were transferred out. Inventory as of October 31 consisted of 3,000 units that were 50% complete. The weighted-average inventory cost per unit completed in October was
A. $3.51
B. $3.88
C. $4.00
D. $3.99
Why isn't EUP (equivalent units of production) 33,500 instead of 28,500? Since, the BWIP as to weighted average is suppose to always be 100%.
What is the maximum external price, what will be total net income and what is the contribution margin ratio - how many units must be sold to earn net income of $300,000?
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