During January,the Production Department of a Process Operations System Completed

question 25

Multiple Choice

During January,the production department of a process operations system completed and transferred to finished goods a total of 78,000 units.At the end of January,9,000 additional units were in process in the production department and were 65% complete with respect to labor.The beginning inventory included labor cost of $37,100 and the production department incurred direct labor cost of $294,300 during January.Compute the direct labor cost per equivalent unit for the department using the weighted-average method.

• A)$6.34.
• B)$3.77.
• C)$3.51.
• D)$4.25.
• E)$3.95.

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Definitions:

Split-Off Point

The point in processing at which all joint costs have been incurred.

Relative Net Realizable Values

A method used to allocate joint costs based on the estimated final sales value of products minus any additional processing costs.

Charge

A fee or price asked for goods and services, or an accounting entry reflecting a debt or liability.