A Company Uses a Process Cost Accounting System and the Weighted-Averaage

question 80

Multiple Choice

A company uses a process cost accounting system and the weighted-averaage inventory valuation method.Its Assembly Department's beginning inventory consisted of 50,000 units,three-fourths complete with respect to direct labor and overhead.The department started and finished 127,500 units this period.The ending inventory consists of 40,000 units that are one-fourth complete with respect to direct labor and overhead.All direct materials are added at the beginning of the process.Goods in Process included direct labor costs of $30,000 and overhead costs of $40,000 for the period.The overhead cost per equivalent unit is:

• A) $0.126
• B) $0.160
• C) $0.178
• D) $0.213
• E) $0.373

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Definitions:

Client-Visits

The number of times clients come to a business location or are visited by the business's representatives for services or sales activities.

Activity Variance

The difference between the budgeted cost of activities planned vs. the actual cost of activities incurred.

Administrative Expenses

Expenses related to the general operation of a business that are not directly tied to production, such as office supplies and salaries of non-production staff.

Client-Visits

The act of meeting with clients in-person or virtually to discuss services, products, or business progress.