Bost Products Inc -If Bost Uses the Weighted-Average Method of Computing Equivalent Units

question 54

Multiple Choice

Bost Products Inc. manufactures plastic products and uses process costing to account for the cost of products manufactured. All product costs are added evenly throughout the production process. The following information was available for the plastic department for the month of December:
$\begin{array}{lrr}&\text { Number }&\text { Production }\\& \underline{\text { of units }}& \underline{\text { Costs }}\\\text { Beginning work-in-process ( } 60 \% \text { complete) } & 20000 & \$72000 \\\text { Current period production } &300000 & 1809000 \\\text { Ending work-in-process ( } 35 \% \text { complete) } & 10000 &\end{array}$



-If Bost uses the weighted-average method of computing equivalent units and assigning product costs,what is the cost per equivalent unit for December?

• A) $6.00
• B) $5.77
• C) $5.94
• D) $6.16

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Definitions:

Management's Responsibility

The obligations and duties of managers to make decisions, guide teams, and ensure the successful operation and strategic direction of the organization.

Stakeholder View

An approach that considers the interests and concerns of everyone who has a stake in a business or project.

Social Welfare

Programs and policies designed to improve the well-being of individuals and communities, often through government assistance.

Corporate Profits

Denotes the financial surplus generated by a company after deducting all its expenses from its total revenue.