Sparky Corporation Uses the Weighted-Average Method of Process Costing

question 16

Multiple Choice

Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department: Units:
Beginning Inventory: 25,000 units, 100% complete as to materials and 55% complete as to conversion.
Units started and completed: 110,000.
Units completed and transferred out: 135,000.
Ending Inventory: 30,000 units, 100% complete as to materials and 30% complete as to conversion.
Costs:
Costs in beginning Work in Process - Direct Materials: $43,000.
Costs in beginning Work in Process - Conversion: $48,850. Costs incurred in February - Direct Materials: $287,000.
Costs incurred in February - Conversion: $599,150.
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Calculate the cost per equivalent unit of conversion.

• A) $5.45
• B) $4.98
• C) $4.50
• D) $4.16
• E) $4.60

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Definitions:

Abbreviation

A shortened form of a word or phrase, used to save space or avoid repetition.

Drop

A small amount of liquid, made in a roughly spherical shape, often used to describe measurements of liquids.

Ml

Milliliter, a unit of volume in the metric system equal to one-thousandth of a liter, often used to measure liquids.

Liters

A metric unit of volume equal to 1,000 cubic centimeters, commonly used to measure liquids and gases.