Harker Company Uses the Weighted-Average Method in Its Process Costing

question 61

Multiple Choice

Harker Company uses the weighted-average method in its process costing system.The first processing department,the Welding Department,started the month with 16,000 units in its beginning work in process inventory that were 40% complete with respect to conversion costs.The conversion cost in this beginning work in process inventory was $29,440.An additional 59,000 units were started into production during the month and 61,000 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 10% complete with respect to conversion costs.A total of $246,431 in conversion costs was incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for the month? (Round your answer to three decimal places. )

• A) $3.375.
• B) $4.176.
• C) $4.421.
• D) $4.600.

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Definitions:

Families

Groups of individuals related by blood, marriage, or adoption who live together and share economic, emotional, and social ties.

Income Inequality

The uneven allocation of income among individuals or households within an economic system.

Distribution Of Income

The way in which total income is shared amongst the population or different groups within a society.

Pre-Tax-And-Transfer Income

The measure of a household's income before taxes are deducted and before any government transfers, such as social security or unemployment benefits, are added.