The Following Information Is Available for Department a for the Month

question 109

Multiple Choice

The following information is available for Department A for the month of January:
$\begin{array}{lcc}& \underline{\text {Units}}&\underline{\text{cost}} \\\text { Work in process, January } 1 \text { (70\% complete) } & 10,000 & \\ \text { Direct materials } & & \$ 36,000 \\ \text { Direct labour } & & 18,000 \\\text { Manufacturing overhead } & &\underline{ 24,000} \\ \text { Total work in process, January } 1 & &\underline{ \$ 78,000 }\\ \begin{array}{l}\text { Started in production during January } \\\text { Costs added: }\end{array} & 40,000 & \\ \text { Direct materials } & & \$ 108,000 \\ \text { Direct labour } & & 48,000 \\ \text { Manufacturing overhead } & &\underline{ 60,600} \\\text { Total costs added during January } & & \underline{\$ 216,600 }\\\text { Work in process, January } 31 \text { ( } 80 \% \text { complete) }&4,000\end{array}$ Materials are added at the beginning of the process.Round unit costs to two decimal places.
-Refer to the figure.What is the cost per equivalent unit of production for conversion using the weighted average method?

• A)$2.19
• B)$2.55
• C)$3.06
• D)$3.54

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Definitions:

Hertz

A unit of frequency equal to one cycle per second, used to measure wave frequencies, such as sound waves or electromagnetic waves.

Oligopoly

A market structure characterized by a small number of firms controlling a large portion of the market share, which gives them considerable power to set prices and influence market conditions.

Cartel

An association of manufacturers or suppliers with the purpose of maintaining prices at a high level and restricting competition.

Collusion

An agreement between rival firms to cooperate in a way that increases their profits, often by fixing prices or limiting production.