Chapin Company Manufactures Generic Notebooks The Unit Cost for Conversion Costs Is _____

question 156

Multiple Choice

Chapin Company manufactures generic notebooks.Material is introduced at the beginning of the process in the Printing department.Conversion costs are applied uniformly throughout the process.The weighted-average method of product costing is used.Data for the Printing department for the month of June follow: $\begin{array}{lr}\text { Work-in-process inventory, June } 1\\\\\text { Units } & 15,000 \text { units } \\\text { Direct materials } 100 \% \text { complete) } & \$ 34,000 \\\text { Conversion costs 30\% complete) } & \$ 14,000\\\\\text { Units started in June } & 65,000 \text { units } \\\text { Units completed in June } & 62,000 \text { units } \\\text { Work-in-process inventory, June 30 } & 18,000 \text { units }\\100 \% \text { complete with regard to materials }\\\text { and } 50 \% \text { complete with regard to conversi on costs) }\\\\\text { Direct material s added in June } & \$ 285,000 \\\text { Conversion costs added in June } & \$ 210,000\end{array}$ The unit cost for conversion costs is _____.

• A)$2.62
• B)$2.88
• C)$2.80
• D)$3.15

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Definitions:

Terms

Agreed-upon stipulations and conditions under which transactions or agreements are made.

Insulation Job

A task or project aimed at applying materials to buildings or structures to prevent heat loss or gain, thereby improving energy efficiency.

Annual Fuel Bill

The total expense incurred for fuel consumption over the course of a year.

Interest Rate

The slice of a loan that incurs a charge as interest to the borrower, typically represented as an annual percentage of the remaining loan amount.