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

question 263

Multiple Choice

Carpenter Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 600 units. The costs and percentage completion of these units in beginning inventory were: A total of 7,800 units were started and 7,100 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:
The ending inventory was 85% complete with respect to materials and 70% complete with respect to conversion costs.The cost per equivalent unit for materials for the month in the first processing department is closest to:

• A) $11.31
• B) $12.21
• C) $11.58
• D) $11.93

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Definitions:

Beta Coefficient

A numerical value that measures the volatility of a stock or portfolio in comparison to the overall market.

Historical Relationship

A connection or correlation between variables or events over a period of time, often analyzed to predict future trends.

Risk Tolerance

The degree of variability in investment returns that an investor is willing to withstand.

Risk Aversion

The tendency to prefer certainty over uncertainty, leading to decisions that minimize exposure to risk.