A Company Uses a Process Cost Accounting System and the Weighted

question 164

Multiple Choice

A company uses a process cost accounting system and the Weighted Average inventory valuation method. Its Assembly Department's beginning inventory consisted of 50,000 units, 3/4 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 1/4 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:

Response Differentiation

A process in operant conditioning where behaviors are modified by being reinforced only when they meet a certain criterion.

Positive Reinforcer

A stimulus which, when presented after a behavior, increases the likelihood of that behavior being repeated.

Reinforce

To strengthen a behavior by providing a consequence that increases the likelihood of the behavior being repeated.

Avoidance Conditioning

A response that prevents the occurrence of a punisher. This increases the probability of a low-occurring response and maintains that response at a high level. The principle of avoidance conditioning states that a behavior will increase in frequency if it prevents a punisher from occurring.