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

question 15

Multiple Choice

Annenbaum Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 2,300 units. The costs and percentage completion of these units in beginning inventory were: A total of 10,300 units were started and 7,800 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 50% complete with respect to materials and 35% 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) $7.78
• B) $8.38
• C) $13.23
• D) $6.96

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Definitions:

Rate of Change

Rate of Change is a measure used in mathematics and economics to represent the speed at which a variable changes over a specific period of time.

Poisson Distribution

A probability distribution that expresses the probability of a given number of events happening in a fixed interval of time or space, assuming events occur with a known constant rate and independently of the time since the last event.

Net Revenue

The total amount of income generated from sales or services after subtracting returns, allowances, and discounts.

Poisson Distribution

A discrete probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space, given the average number of times the event occurs over that interval.