Andrews Corporation Uses the Weighted-Average Method of Process Costing -
the Cost Per Equivalent Unit of Production for Following

question 185

Multiple Choice

Andrews Corporation uses the weighted-average method of process costing. The following information is available for February in its Polishing Department: $\begin{array}{lr}\text { Equivalent units of production-direct materials } & 110,000 \mathrm{EUP} \\\text { Equivalent units of production conversion } & 95,000 \mathrm{EUP}\\\text { Costs in beginning Work in Process-direct materials } & \$ 49,000 \\\text { Costs in beginning Work in Process conversion } & \$ 36,000 \\\text { Costs incurred in February-direct materials } & \$ 414,000 \\\text { Costs incurred in Febuary-conversion } & 520.000\end{array}$
-
The cost per equivalent unit of production for direct materials is:

• A) $5.05
• B) $4.21
• C) $5.85
• D) $4.97
• E) $9.26

---

Definitions:

Annual Growth Rate

The year-over-year increase in value of an investment, expressed as a percentage.

Compounded Annually

An interest calculation method where the interest earned each year is added to the principal, and the following year's interest is based on this new principal amount.

Simple Interest

Interest determined purely on the original amount borrowed, or on the unpaid portion of that initial amount.

Special Account

An account designated for a particular purpose or offering special conditions or privileges.