Richards Corporation Uses the Weighted-Average Method of Process Costing

question 45

Multiple Choice

Richards Corporation uses the weighted-average method of process costing. The following information is available for October in its Fabricating Department: Units:
Beginning Inventory: 80,000 units, 60% complete as to materials and 20% complete as to conversion.
Units started and completed: 250,000.
Units completed and transferred out: 330,000.
Ending Inventory: 30,000 units, 40% complete as to materials and 10% complete as to conversion.
Costs:
Costs in beginning Work in Process - Direct Materials: $37,200. Costs in beginning Work in Process - Conversion: $79,700.
Costs incurred in October - Direct Materials: $646,800. Costs incurred in October - Conversion: $919,300.
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Calculate the cost per equivalent unit of conversion.

• A) $3.15
• B) $2.90
• C) $3.00
• D) $2.76
• E) $3.68

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Definitions:

Explanatory Style

A psychological attribute that indicates how people explain to themselves why they experience a particular event, either positive or negative.

Type A Personality

A personality trait characterized by high levels of competitiveness, impatience, and aggression.

Determined to Achieve

Having a strong resolve or commitment to reach a goal or fulfill an objective.

High Risk

A situation or condition that has a significantly increased likelihood of a negative outcome or danger.