Figure 6-22 the Following Information Is Available for Department C

question 162

Multiple Choice

Figure 6-22 The following information is available for Department C for the month of August:
Materials are added at the beginning of the process. Inspection takes place at the 50 percent point in the conversion process to determine spoiled units. Round unit costs to two decimal places. The company uses the weighted average cost flow assumption.
Refer to Figure 6-22. Department C's cost per unit for materials using the weighted average method is

• A) $2.16.
• B) $2.88.
• C) $3.43.
• D) $3.60.

---

Definitions:

Corporation

A legal entity formed under state or federal statutes that is distinct from its owners (shareholders), providing limited liability protection, ease of transferability of shares, and potential tax benefits.

Legal Entity

An individual or organization with legal rights and obligations, including the ability to enter into contracts, sue, and be sued.

Cumulative Preferred Stock

A type of preferred stock that has a provision that requires the company to pay all dividends, including those that have been skipped, before any dividends can be distributed to common stockholders.

Common Shareholders

Individuals or entities that own shares of a company's common stock, granting them rights to dividends and voting in shareholder meetings.