Hache Corporation Uses the Weighted-Average Method in Its Process Costing

question 193

Multiple Choice

Hache Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 17,000 units in its beginning work in process inventory that were 20% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $7,480. An additional 89,000 units were started into production during the month and 92,000 units were completed in the Welding Department and transferred to the next processing department. There were 14,000 units in the ending work in process inventory of the Welding Department that were 90% complete with respect to conversion costs. A total of $202,400 in conversion costs were incurred in the department during the month. The cost per equivalent unit for conversion costs for the month is closest to:

• A) $1.965
• B) $2.200
• C) $2.007
• D) $2.274

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Definitions:

Simple Rate of Return

A measure of the gain or loss on an investment over a specific period, expressed as a percentage of the investment's initial cost.

Issued

Refers to the process of making something available or distributing it, commonly used in the context of financial instruments like stocks or bonds.

Revolving Line

A type of credit that does not have a fixed number of payments, in contrast to installment loans; credit is automatically renewed as debts are paid off.

Annual Interest Rate

The percentage of interest that is charged or earned on an investment or loan over the course of a year.