Department F Had 4,000 Units in Work in Process That

question 140

Multiple Choice

Department F had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. Of the $12,500, $8,000 was for material and $4,500 was for conversion costs, 14,000 units of direct materials were added during the period at a cost of $28,700, 15,000 units were completed during the period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450 and factory overhead was $18,710.​
-If the weighted average method is used, the materials cost per unit (rounded to the nearest cent) would be

• A)$2.04
• B)$1.59
• C)$1.91
• D)$2.00

---

Definitions:

Money Creation

The process by which the money supply of a country is increased through the activities of its central bank and commercial banking system.

Banking System

The network of banks and financial institutions that provide banking services, including deposits, loans, and currency exchange.

Required Reserve Ratio

The minimum percentage of deposits that a bank must hold in reserve and not lend out.

Excess Reserves

Funds that banks hold over and above the required reserve ratio set by the central bank, often earning interest.