Geller Manufacturing Uses a Process Cost System to Manufacture Sensors

question 19

Multiple Choice

Geller Manufacturing uses a process cost system to manufacture sensors for the security industry.The following information pertains to operations for the month of March. ​
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The beginning inventory was 70% complete for materials and 30% complete for conversion costs.The ending inventory was 90% complete for materials and 50% complete for conversion costs.
Costs pertaining to the month of March are as follows:
Beginning inventory costs are: materials, $44,400; conversion cost $30,500.
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Costs incurred during March are: materials used, $588,000; conversion cost $624,000.
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Using the weighted average method, the equivalent unit conversion cost, rounded to 2 decimal places, for March is

• A) $5.95.
• B) $6.00.
• C) $5.13.
• D) $6.23.

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Definitions:

Subsidiary

A company that is controlled by another company, called the parent company, through the ownership of more than half of its voting stock.

Control Premium

An additional amount paid over the fair market value of a company to acquire a controlling interest in it.

Full Goodwill Method

An accounting approach where goodwill is calculated as the difference between the purchase price and the fair value of the identifiable net assets of the acquired entity, including the non-controlling interest's share of the net assets.