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Ultimate Warrior Company Produces Plastic Cups in a One- Department

Question 151

Multiple Choice

Ultimate Warrior Company produces plastic cups in a one- department process. The following information is available:  Work-in-process inventory,beginning 0 Units started 60,000 Units complete and transferred out 48,000 Work-in-process inventory,ending 12,000 Direct materialsadded $240,000 Direct labor $165,600 Factory overhead $82,800\begin{array}{ll}\text { Work-in-process inventory,beginning }&0\\\text { Units started } & 60,000 \\\text { Units complete and transferred out } & 48,000 \\\text { Work-in-process inventory,ending } & 12,000 \\\text { Direct materialsadded } & \$ 240,000 \\\text { Direct labor } & \$ 165,600 \\\text { Factory overhead } & \$ 82,800\end{array} The units still in process are 100% complete with respect to direct materials and 60% complete with respect to conversion costs. The unit cost of conversion costs is:


A) $0.88
B) $4.50
C) $4.14
D) $5.18

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