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

question 24

Multiple Choice

Carpenter Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 600 units. The costs and percentage completion of these units in beginning inventory were:
A total of 7,800 units were started and 7,100 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 85% complete with respect to materials and 70% complete with respect to conversion costs.
Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.
-The cost per equivalent unit for materials for the month in the first processing department is closest to:

• A) $11.31
• B) $12.21
• C) $11.58
• D) $11.93

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Definitions:

Supply Curve

A graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period.

Aluminum Production

The industrial process of extracting aluminum from its oxide, alumina, typically through the Hall-Héroult process.

Positive Externality

A benefit received by someone who had nothing to do with the activity that generated the benefit, often leading to an underproduction of the good/service in a free market.

Compensation

The complete sum of financial and non-financial compensation given to a worker by their employer in exchange for the work carried out as needed.