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

question 70

Multiple Choice

Gunes Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were:
A total of 8,500 units were started and 7,400 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 50% complete with respect to materials and 35% 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) $18.29
• B) $17.02
• C) $16.42
• D) $15.28

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Definitions:

Z-Score

A measure showing how many standard deviations an element is from the mean.

Z-Scores

Standardized scores that indicate the number of standard deviations an element is from the mean of its distribution.

Standard Deviations

A measure that quantifies the amount of dispersion or variation of a set of data values from the mean.

Z-Scores

Standardized scores that indicate how many standard deviations an element is from the mean of its data set.