Weston Company Uses the FIFO Method in Its Process Costing

question 110

Multiple Choice

Weston Company uses the FIFO method in its process costing system.The first processing department,the Welding Department,started the month with 18,000 units in its beginning work in process inventory that were 50 percent complete with respect to conversion costs.The conversion costs in the beginning work in process inventory were $52,200.An additional 55,000 units were started into production during the month.There were 16,000 units in the ending work in process inventory of the Welding Department that were 20 percent complete with respect to conversion costs.A total of $284,160 in conversion costs were incurred in the department during the month.What would be the cost per equivalent unit for conversion costs for the month on the department's process cost report? (Round to three decimal places. )

• A)$5.550
• B)$4.608
• C)$5.800
• D)$5.167

---

Definitions:

Drying Times

The duration it takes for a material or substance to lose its moisture or water content until deemed dry.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, usually denoted by alpha (α) and used as a threshold for determining statistical significance.

Mean Number of Chips

An average quantity of chips determined by dividing the total number of chips by the count of contributing units or instances.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, typically denoted as alpha (α).