A Company Uses the Weighted Average Method for Inventory Costing

question 154

Multiple Choice

A company uses the weighted average method for inventory costing. During a period, a production department had 20,000 units in beginning goods in process inventory which were 40% complete; the department completed and transferred 165,000 units. At the end of the period, 22,000 units were in the ending goods in process inventory and are 75% complete. All of these are with respect to labor. The production department had labor costs in the beginning goods is process inventory of $99,000 and total labor costs added during the period are $726,825. Compute the equivalent cost per unit for labor.

• A) $4.40.
• B) $4.76.
• C) $4.19.
• D) $4.55.
• E) $4.61.

---

Definitions:

Homo Habilis

An extinct species of early humans, known for its use of basic stone tools, living approximately 2.1 to 1.5 million years ago.

Australopithecines

A genus of hominids that lived in Africa between about 4 to 2 million years ago, known for walking upright and being a direct ancestor of modern humans.

Laetoli Site

An archaeological site in Tanzania known for its hominin footprints preserved in volcanic ash, providing evidence of early human bipedalism.

Tanzania

A country located in East Africa known for its vast wilderness areas, including the plains of Serengeti National Park and Kilimanjaro National Park.