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:

Weak Form Efficient

A market efficiency theory stating that all past trading information is already reflected in stock prices, and that technical analysis cannot consistently produce excess returns.

Investment Risk

The possibility of losing some or all of an investment's value due to various factors including market volatility, economic conditions, or company performance.

Historical Return

The return that an investment has generated over a specified period of time in the past.

Investment Portfolio

A collection of investments held by an individual or institution, including stocks, bonds, real estate, and other assets.