The Following Information Is Available for Department C for the Month

question 16

Multiple Choice

The following information is available for Department C for the month of August: $$\begin{array} { l r r } & \text { Units } & \text { Cost } \\\text { Work in process, August } 1 \text { (70\% complete) } & 10,000 & \\\text { Direct materials } & & \$ 36,000 \\\text { Direct labor } & & 18,000 \\\text { Manufacturing overhead } & & 24,000 \\\text { Total work in process, August } 1 && \$ 78,000 \\\text { Started in production during August } & 40,000 & \\\text { Costs added: } & & \\\text { Direct materials } & & 108,000 \\\text { Direct labor } & & 48,000 \\\text { Manufacturing overhead } & & 61,040\\\text { Total costs added during August } & & \$ 217,040\\\text { Work in process, August } 31 \text { (80\% complete) } & 4,000 & \\\text { Units completed and transferred out } & 42,000 &\end{array}$$ Materials are added at the beginning of the process. Inspection takes place at the 50 percent point in the conversion process to determine spoiled units. Round unit costs to two decimal places. The company uses the weighted average cost flow assumption.
Department C's cost per unit for materials using the weighted average method is

• A)$2.16.
• B)$2.88.
• C)$3.43.
• D)$3.60.

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Definitions:

Apple iPhone

A smartphone brand developed by Apple Inc., known for its iOS operating system, multi-touch interface, and ecosystem of apps.

Manufacturing Plant

A manufacturing plant is an industrial site where goods are produced or processed, typically involving workers and machinery in the production process.

Valid Probability

A numerical value that accurately represents the likelihood of an event, correctly ranging between 0 and 1.

Qualified Professional

An individual who has met the educational, training, or certification requirements of his or her professional field.