PM Manufacturing Produces a Chemical Pesticide and Uses Process Costing

question 76

Multiple Choice

PM Manufacturing produces a chemical pesticide and uses process costing.There are three processing departments-Mixing,Refining,and Packaging.On January 1,the first department-Mixing-had no beginning inventory.During January,37,000 fl.oz.of chemicals were started in production.Of these,30,000 fl.oz.were completed,and 7,000 fl.oz.remained in process.In the Mixing Department,all direct materials are added at the beginning of the production process,and conversion costs are applied evenly through the process.The weighted-average method is used. At the end of the month,PM calculated equivalent units in the Mixing Department as shown below:
$$\begin{array} { | l | r | r | r | } \hline \text { EQUIVALENT UNITS } & &{ \text { Equivalent Units } } & \text { Equivalent Units } \\\hline \text { Units accounted for } & & \text { Direct Materials Costs } & \text { Conversion Costs } \\\hline \begin{array} { l | r | r } \text { Completed and transferred } \\\text { but }\end{array} & 30,000 & 30,000 & 30,000 \\\hline \text { Ending work-in-process* } & \underline { 7,000 } & \underline { 7,000 } & \underline { 4,200 } \\\hline & \underline { 37,000 } & \underline { 37,000 } & \underline { 34,200 } \\\hline\end{array}$$ * Percent complete for direct materials costs: 100%
Percent complete of completion for conversion costs: 60%
During January,the Mixing Department incurred $50,000 in direct materials costs and $213,400 in conversion costs.How much was the cost per equivalent unit for materials and for conversion costs?
(Use the weighted average method and round your answer to the nearest cent.)

• A) $7.14 per EP for direct materials and $5.77 per EUP for conversion costs
• B) $1.35 for materials and $7.11 for conversion
• C) $1.67 for materials and $7.11 for conversion
• D) $1.35 for materials and $6.24 for conversion

Educate patients on the relationship between lifestyle choices and sleep quality.

Understand the concept and implications of confounding variables in research studies.

Interpret correlation coefficients and differentiate between positive and negative correlations.

Comprehend the importance and application of open practices in scientific research.

---

Definitions:

Respiratory System

The body system that carries on gas exchange; in vertebrates, consists of the lungs and airways.

Carbon Dioxide

An odorless and colorless gas, the result of organic compounds and carbon being burnt and the process of respiration. Found naturally in the atmosphere, it is essential for the photosynthesis conducted by plants.

Blood

Blood is a vital fluid in humans and other animals that transports necessary substances such as nutrients and oxygen to the cells and carries away waste products.

Transported

Moved or carried from one place to another.