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:

Serious Intent

The genuine intention to engage in a legal agreement or action, implying that the party has a real interest in following through.

Effective Offer

A proposal that clearly outlines the terms and conditions of a contract, legally binding once accepted.

Shrink-wrap Terms

The conditions and terms of use that are included with a product's packaging and are accepted by breaking the shrink-wrap or seal.

Enforceable

Capable of being imposed or complied with by law or force.