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