Windsor Corporation, Which Adds Materials at the Beginning of Production

question 61

Multiple Choice

Windsor Corporation, which adds materials at the beginning of production, uses a weighted-average process costing system. Consider the data that follow: $\begin{array} { | l | c | r | r | } \hline & \text { Number of Units } & { \text { Cost of Materials } } \\\hline \text { Beginning work in process } & 40,000 & \$ 80,600 & \\\hline \text { Started in June } & 60,000 & 124,400 & \\\hline \text { Production completed } & 75,000 & & \\\hline \text { Ending work in process } & 25,000 & & \\\hline\end{array}$ The company's cost per equivalent unit for materials is:

• A)$1.24.
• B)$1.66.
• C)$1.67.
• D)$2.05.
• E)$8.20.

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Definitions:

Birth Per Woman

The typical amount of offspring a woman is expected to have in her lifetime, assuming present fertility rates remain constant.

Natural Resource Markets

Markets that deal with the buying, selling, and trading of resources that occur naturally, such as water, oil, coal, and forests.

Shortages

A market condition in which the demand for a product exceeds its supply, often leading to increased prices and wait times for the product.

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The average consumption per individual in a certain area or population.