Information About Units Processed and Processing Costs Incurred During a Recent

question 108

Multiple Choice

Information about units processed and processing costs incurred during a recent month in the Refining Department of a manufacturing company follow: $\begin{array} {| l | r | r | } \hline & \text { Number of Units } & \begin{array} { r } \text { Conversion costs } \\\text { percentage complete }\end{array} \\\hline \begin{array} { l } \text { Beginning work in process } \\\text { inventory }\end{array} & 11,000 & 35 \% \\\hline \begin{array} { l } \text { Units started into } \\\text { production }\end{array} & 120,000 & \\\hline \begin{array} { l } \text { Units completed and } \\\text { transferred out }\end{array} & 114,000 & 30 \% \\\hline \begin{array} { l } \text { Ending work in process } \\\text { inventory }\end{array} & 17,000 & \\\hline\end{array}$
The beginning work-in-process inventory included $11,000 of conversion cost. During the month, the Refining Department incurred an additional $290,000 in conversion costs.

-Assuming that the company uses the weighted-average cost method,what is the cost per equivalent unit for conversion costs for the month in the refining Department,rounded to the nearest cent?

• A) $2.55.
• B) $2.53.
• C) $2.50.
• D) $2.44.

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Definitions:

Health Care

The preservation or enhancement of well-being through the avoidance, identification, management, recuperation, or healing of diseases, ailments, injuries, and other physical and mental conditions in individuals.

Price Elasticity

A measure of the sensitivity of the quantity demanded or supplied of a good to a change in its price.

Health Care

The maintenance or improvement of health via the prevention, diagnosis, treatment, recovery, or cure of disease, illness, injury, and other physical and mental impairments in people.

Perfectly Inelastic

Perfectly inelastic describes a situation where the quantity demanded or supplied does not change in response to a change in price.