The Following Information Is Available for Department C for the Month

question 129

Multiple Choice

The following information is available for Department C for the month of June: $\begin{array}{lr}&\text { Units }& \text { Cost }\\\text { Work in process, June } 1 \text { (70\% complete) } & 10,000\\\text { Direct materials } && \$ 36,000 \\\text { Direct labor } && 18,000 \\\text { Manufacturing overhead } && 24.000\\ \text {Total work in process, June 1 }&&\$78,000\\ \text {Started in production during June }&40,000\\\text { Costs added: } & \\\text { Direct materials } && \$ 108,000 \\\text { Direct labor } && 48,000 \\\text { Manufacturing overhead } && 60,600\\\text { Total costs added during June }&&\$216,600\\\text { Work in process, June } 30 \text { (80\% complete }) &4,000\end{array}$
Materials are added at the beginning of the process. Round unit costs to two decimal places.
The cost per equivalent unit of production for materials using the weighted average method is

• A)$2.70.
• B)$2.88
• C)$3.12.
• D)$3.60.

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Definitions:

Book Value

The net value of a company's assets minus its liabilities, often used to determine the company's equity value.

Mispriced

A situation in which a financial instrument is valued incorrectly by the market, often presenting opportunities for investors.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Representativeness Heuristic

A cognitive bias in which an individual categorizes a situation based on patterns of previous experiences or beliefs about the scenario.