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

question 66

Multiple Choice

Paceheco Corporation uses the weighted-average method in its process costing system.The Molding Department is the second department in its production process.The data below summarize the department's operations in January. The accounting records indicate that the conversion cost that had been assigned to beginning work in process inventory was $34,558 and a total of $559,254 in conversion costs were incurred in the department during January.
The cost per equivalent unit for conversion costs for January in the Molding Department is closest to:

• A) $9.479
• B) $9.943
• C) $9.680
• D) $8.435

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Definitions:

Chi-square Distribution

A statistical distribution that describes the distribution of the sum of the squares of a set of variables, often used in hypothesis testing.

Random Variable

A variable that can take on numerical values based on the outcomes of a random event.

Value

The importance, worth, or usefulness of something or a numerical quantity measured or assigned or computed.

Test Statistic

A statistic calculated from sample data, used to assess the plausibility of a hypothesis.