Harker Company Uses the Weighted-Average Method in Its Process Costing

question 92

Multiple Choice

Harker Company uses the weighted-average method in its process costing system.The first processing department,the Welding Department,started the month with 16,000 units in its beginning work-in-process inventory that were 40% complete with respect to conversion costs.The conversion cost in this beginning work-in-process inventory was $29,440.An additional 59,000 units were started into production during the month,and 61,000 units were completed in the Welding Department and transferred to the next processing department.There were 14,000 units in the ending work-in-process inventory of the Welding Department that were 10% complete with respect to conversion costs.A total of $246,400 in conversion costs were incurred in the department during the month.
What would be the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.)

• A) $4.176.
• B) $4.600.
• C) $3.375.
• D) $4.421.

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Definitions:

Superordinate Goal

In intergroup conflict, an objective held in common by all conflicting groups that cannot be achieved by any one group without the supportive efforts of the others.

Ultimate Attribution Error

A perceptual bias occurring in intergroup relations. Negative behaviors by out-group members are attributed to stable, internal factors such as undesirable personal traits or dispositions, but positive behaviors by out-group members are attributed to unstable, external factors such as situational pressures or luck. As a result, in-group observers will blame the out-group for negative outcomes but will not give it credit for positive outcomes.

Out-group Homogeneity

The perception that members of a group different from ours are more similar to each other than they actually are, often leading to stereotyping.

Goal Isomorphism

In groups, a state in which group goals and individual goals held by a member are similar in the sense that actions leading to the attainment of group goals also lead simultaneously to the attainment of individual goals.