Exhibit 4-1 Silva Coporation Uses the Weighted Average Process Costing Method.The Mixing

question 33

Multiple Choice

Exhibit 4-1
Silva Coporation uses the weighted average process costing method.The Mixing Department at Silva had 17,000 units in beginning inventory.These units contained $70,000 in direct materials,$80,000 in direct labor,and $60,000 in overhead.During the period,the department incurred costs of $320,000 in direct materials,$400,000 in direct labor and $200,000 in overhead and started 80,000 units.Ending inventory consisted of 6,000 units which were 100% complete with respect to direct materials and 50% complete with respect to direct labor and overhead.
-Refer to Exhibit 4-1.What is the cost per equivalent unit for overhead (rounded to the nearest cent) ?

• A)$2.77
• B)$0.64
• C)$2.52
• D)$2.68
• E)None of the answer choices is correct.

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Definitions:

Unconditioned Response

An automatic, unlearned reaction to a stimulus, such as salivating when smelling food.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without the need for prior learning.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response on its own.

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly presented along with an unconditioned stimulus.