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

question 107

Multiple Choice

David Company uses the weighted-average method in its process costing system.The first processing department,the Welding Department,started the month with 20,000 units that were 80% complete with respect to conversion costs.The conversion cost in this beginning work-in-process inventory was $123,200.An additional 65,000 units were started into production during the month.There were 19,000 units in the ending work-in-process inventory of the Welding Department that were 10% complete with respect to conversion costs.A total of $389,250 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) $7.547.
• B) $7.700.
• C) $4.634.
• D) $5.988.Cost/EU = (123,200 + 389,250)/67,900 = $7.547

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Definitions:

Clunking

A noise or series of noises that may be heard coming from a vehicle's suspension or drivetrain, indicative of loose or worn parts that require attention.

Creaking

A sharp, harsh, squeaking sound made by something under pressure, often due to movement or weight.

Knocking

A problem in internal combustion engines caused by the fuel-air mixture igniting prematurely in the cylinder, leading to a sharp and often loud noise, which can damage the engine.

Control Arm Bushings

Rubber or polyurethane components that fit into control arms to provide a cushion and reduce vibration between the arm and the vehicle frame.