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

question 49

Multiple Choice

Lanjan Corporation uses the weighted-average method in its process costing system.Operating data for the first processing department for the month of June appear below: According to the company's records, the conversion cost in beginning work in process inventory was $92,218 at the beginning of June.Additional conversion costs of $571,618 were incurred in the department during the month. What was the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.)

• A)$9.410
• B)$7.521
• C)$5.954
• D)$9.220

---

Definitions:

Contract Price

The agreed amount of money for the exchange of goods, services, or property specified in a contract.

Initiation

The act of beginning or starting something, such as a process, project, or activity.

Maturity

Specified date at which the principal amount of a bond is paid.

Payoff Profile

A plot showing the gains and losses that will occur on a contract as the result of unexpected price changes.