Answer the Following Question(s)using the Information Below

question 154

Multiple Choice

Answer the following question(s) using the information below:
Hawk Ltd.uses process costing in its Fabricating Department.At the beginning of October, it had 12,000 units in beginning work-in-process that were 40% complete with respect to conversion.During October it put 87,000 units into production and completed 89,000 good units.At October 31, there were 3,000 units in ending work-in-process that were 70% complete with respect to conversion.Direct materials are added at the beginning of the process.Inspection occurs at the end of the process and normal spoilage is 6% of good output.Costs related to the beginning inventory were $36,800 for direct materials and $28,600 for conversion costs.During the month, the company issued $280,000 of direct materials and incurred $599,400 of conversion costs.
-Assuming Hawk uses the weighted average method of process costing, the cost per equivalent unit for direct materials and conversion costs respectively are

• A)$3.20; $6.40.
• B)$3.44; $6.89.
• C)$2.81; $6.09.
• D)$3.64; $6.40.
• E)$3.22; $6.42.

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Definitions:

Energy Information Administration

A U.S. Government agency responsible for collecting, analyzing, and disseminating energy information to promote sound policymaking, efficient markets, and public understanding of energy and its interaction with the economy and the environment.

Natural Gas

A fossil fuel formed from the remains of ancient marine organisms, used primarily for heating, cooking, and generating electricity.

Real GDP

Real GDP, which accounts for inflation, quantifies the total value of goods and services a nation's economy generates in actual terms.

BTU Of Energy Consumption

A measure of energy consumption, the British Thermal Unit (BTU) quantifies the amount of heat required to raise the temperature of one pound of water by one degree Fahrenheit.