Question

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1. rambo-conduit corporation manufactures plastic conduit that is used in the cable industry. a conduit is a tube that encircles and protects the underground cable. in the process of making the plastic conduit, called extrusion, the melted plastic (resin) is pressed through a die to form a tube. scrap is produced in this process. information from the cost of production reports for three months is as follows, assuming that inventory remains constant:

	may	june	july
price per pound	×$1.50	×$1.50	×$1.50
plastic material costs	$493,000	$640,000	$677,000
conversion costs	$80,000	$120,000	$115,000
conduit output from the process (feet)	800,000	1,200,000	1,130,000

assuming that there is one-half pound of resin per foot of the finished product, determine the resin materials cost per foot of finished product for june.
a. $0.53
b. $0.60
c. $0.54
d. none of these choices are correct.

1. rambo-conduit corporation manufactures plastic conduit that is used in the cable industry. a conduit is a tube that encircles and protects the underground cable. in the process of

Explanation:

Step1: Calculate total resin cost for June

$\text{Total resin cost} = 700,000 \times \$1.50 = \$1,050,000$

Step2: Find resin per foot of output

Given: $\frac{1}{2}$ pound resin per foot

Step3: Compute resin cost per foot

$\text{Resin cost per foot} = \$1.50 \times \frac{1}{2} = \$0.75$

Step4: Match with options

$\$0.75$ is not among options a-c.

Answer:

d. None of these choices are correct.