Barker Corporation Uses the Weighted-Average Method in Its Process Costing

question 57

Multiple Choice

Barker Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 300 units. The costs and percentage completion of these units in beginning inventory were: A total of 9,100 units were started and 8,700 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: The ending inventory was 85% complete with respect to materials and 20% complete with respect to conversion costs. Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.
The cost per equivalent unit for conversion costs for the first department for the month is closest to:

• A)$26.31
• B)$27.42
• C)$29.38
• D)$27.98

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Definitions:

Internal Centralized Service Department

A department within an organization that provides essential services or support centrally to other departments, often aiming to increase efficiency and standardization.

Manufacturing Department

A specialized division within a company that is focused on the production of goods.

Payroll Accounting

The process of recording and managing all financial transactions related to employee compensation.

Return On Investment

A profitability ratio measuring the gain or loss generated on an investment relative to the amount invested.