A Company Uses a Process Costing System

question 92

Multiple Choice

A company uses a process costing system.Its Assembly Department's beginning inventory consisted of 30,000 units,75% complete with respect to direct labor and overhead.The department completed and transferred out 127,500 units this period.The ending inventory consists of 20,000 units that are 25% complete with respect to direct labor and overhead.All direct materials are added at the beginning of the process.The department incurred direct labor costs of $24,000 and overhead costs of $32,000 for the period.Assuming the weighted average method,the direct labor cost per equivalent unit (rounded to the nearest cent) is:

• A)$0.14.
• B)$0.16.
• C)$0.18.
• D)$0.30.
• E)$0.37.

---

Definitions:

Evaluative Readjustment

The process of adjusting one's evaluation or appraisal of a situation or information, based on new evidence or perspectives.

Encounter

A meeting or engaging experience between individuals, often leading to an exchange of ideas or a conflict.

Psychoanalytic

Pertaining to the theory and practice of psychoanalysis, which emphasizes unconscious psychological processes and their effects on behavior.

Gestalt

A psychological theory that emphasizes the holistic and intrinsic patterns and shapes people perceive in their visual and experiential worlds.