Peach Company Uses a Weighted-Average Process-Costing System

question 42

Multiple Choice

Peach Company uses a weighted-average process-costing system. Company records disclosed that the firm completed 40,000 units during the month and had 10,000 units in process at month-end, 20% complete. Conversion costs associated with the beginning work-in-process inventory amounted to $231,000, and amounts that relate to the current month totaled $966,000. If conversion is incurred uniformly throughout manufacturing, Peach's equivalent-unit cost is:

• A) $23.00.
• B) $23.94.
• C) $24.15.
• D) $28.50.
• E) None of the answers is correct.

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Definitions:

Malaria

A life-threatening disease transmitted through the bite of an infected Anopheles mosquito, characterized by fever, chills, and flu-like illness.

Nonrandom

Describes a process or selection method that is not determined by chance but possibly by human choice, algorithm, or natural law.

Simple Random Variable

A variable that assigns a numerical value to each possible outcome of a random phenomenon in a simple and straightforward manner.

S Chart

A type of control chart used for monitoring the variability of process data over time, specifically focusing on the standard deviation of the sampled data.