Walter Company Manufactures Greeting Cards With Regard to the Work-In-Process Inventory on September 30,materials Are

question 82

Multiple Choice

Walter Company manufactures greeting cards.Special glittery material is added at the end of the process in the Printing Department.Conversion costs are applied uniformly throughout the process.The weighted-average method of process costing is used.Data for the Printing Department for the month of September follow:
Work-In-Process Inventory,September 1:
$\begin{array} { l } \text {Units }&22,500\\ \text {Direct materials ( \( 0 \% \) complete) }&\$0 \\ \text {Conversion costs ( \( 30 \% \) complete) }&\$20,472 \\\end{array}$

$\begin{array} { l } \text { Units started in September}&127,500 \\ \text {Units completed in September }& 123,000\\ \text { Work-In-Process Inventory, September 30}&27,000 \\\end{array}$

$\begin{array} { l } \text { Direct materials added in September }&\$ 427,000\\ \text { Conversion costs added in September}&\$315,000 \\\end{array}$

With regard to the Work-In-Process Inventory on September 30,materials are 0 percent complete and conversion costs are 60 percent complete.The unit cost for conversion costs is ________.

• A) $2.24
• B) $2.26
• C) $2.41
• D) $2.73

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Definitions:

Required Reserve Ratio

The fraction of deposits that banks are required to hold in reserve and not lend out, determined by the central bank.

Interest Rates

The cost of borrowing money or the return on investing, typically expressed as a percentage of the principal, and set by central banks or determined by the market.

Excess Reserves

The capital reserves held by a bank or financial institution in excess of what is required by regulators, creditors, or internal controls.

Actual Reserves

The total amount of funds that a bank has on deposit at the Federal Reserve, plus any cash physically held by the bank.