Reid Corporation Uses a Process Costing System in Which Units

question 31

Multiple Choice

Reid Corporation uses a process costing system in which units go through several departments. In the Cutting Department for June, units in the beginning work in process inventory were 80% complete with respect to conversion costs. Units in the ending work in process inventory were 25% complete with respect to conversion costs. Other data for the department for June are as follows: Assuming that the company uses the weighted-average method, the cost per equivalent unit for conversion costs for June is closest to:

• A)$1.64
• B)$1.56
• C)$1.74
• D)$1.48

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Definitions:

Delivering

The process of taking goods, messages, or other items to the people or places they have been sent to.

Work Break Down Structure

A hierarchical decomposition of a project into smaller components, helping in organizing and defining the total scope of the project.

Scope Of Work

A detailed document that describes the work activities, deliverables, and timelines for a project or a portion of a project.

Project Logic Diagram

A graphical representation that illustrates the sequence and inter-relationship of tasks within a project.