Nebraska Company Uses the Weighted-Average Method in Its Process Costing

question 133

Multiple Choice

Nebraska Company uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 18,000 units in its beginning work-in-process inventory that were 30% complete with respect to conversion costs. The conversion cost in this beginning work-in-process inventory was $44,820. An additional 90,000 units were started into production during the month. There were 21,000 units in the ending work-in-process inventory of the Welding Department that were 10% complete with respect to conversion costs. A total of $677,970 in conversion costs were incurred in the department during the month.
What would be the cost per equivalent unit for conversion costs for the month? (Round your answer to 3 decimal places.)

• A) $8.112.
• B) $8.300.
• C) $7.533.
• D) $6.108.

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Definitions:

Expected-Rate-Of-Return

The predicted yield or profit from an investment over a specified period, considering the risks involved.

Diminishing Marginal Returns

A principle stating that as one input variable is increased, there is a point at which the marginal per unit output starts to decrease, holding all other inputs constant.