Black Company Uses the Weighted-Average Method in Its Process Costing

question 41

Multiple Choice

Black Company uses the weighted-average method in its process costing system. company's ending work in process inventory consists of 5,000 units, 80% complete with respect to materials and 50% complete with respect to labour and overhead. If the total dollar value of the inventory is $60,000 and the cost per equivalent unit for labour and overhead is $8.00, the cost per equivalent unit for materials must be?

• A)$8.00.
• B)$4.00.
• C)$10.00.
• D)$5.00.

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Definitions:

Policy Decision Making

The process by which governments or organizations establish rules, directives, and guidelines to influence and determine present and future decisions.

Interrelationships

Mutual or reciprocal relations between components within a system, indicating how they influence or interact with each other.

Cost Method

An accounting method used for recording investments, where the investment is recorded at its acquisition cost without recognizing periodic income but dividends received are recorded as income.