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Fanciful Structures Company Uses the Weighted-Average Method in Its Process

question 41

Multiple Choice

Fanciful Structures Company uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 22,000 units in its beginning work-in-process inventory that were 20% complete with respect to conversion costs. The conversion cost in this beginning work-in-process inventory was $23,320. An additional 97,000 units were started into production during the month and 101,000 units were completed in the Welding Department and transferred to the next processing department. There were 18,000 units in the ending work-in-process inventory of the Welding Department that were 40% complete with respect to conversion costs. A total of $529,380 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.)

Definitions:

Performance Measures

Key indicators used to evaluate the efficiency, effectiveness, and performance of an organization or individual.

Nonfinancial Measures

Performance indicators that are not expressed in monetary units but are qualitative or quantitative measures of a company's performance, such as customer satisfaction.

Investment Center

A business unit or segment within a larger corporation, with control over its investments, expenses, and revenues, often judged by its return on investment.

Profit Margin

Profit margin represents the percentage of revenue that remains as profit after all expenses have been deducted, highlighting the financial health and profitability of a business.