Universal Manufacturing Uses a Weighted-Average Process-Costing System

question 29

Multiple Choice

Universal Manufacturing uses a weighted-average process-costing system. All materials are introduced at the start of manufacturing, and conversion costs are incurred evenly throughout the process. The company's beginning and ending work-in-process inventories totaled 10,000 units and 15,000 units, respectively, with the latter units being 2/3 complete at the end of the period. Universal started 30,000 units into production and completed 25,000 units. Manufacturing costs follow.
Beginning work in process: Materials, $60,000; conversion cost, $150,000
Current costs: Materials, $180,000; conversion cost, $480,000
Universal's equivalent-unit cost for materials is:

• A) $4.50.
• B) $6.00.
• C) $8.00.
• D) $9.60.
• E) None of the answers is correct.

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Definitions:

Behavior Modification

A treatment approach based on the principles of operant conditioning, aiming to change undesirable behaviors through the systematic use of reinforcement or punishment.

Token Economy

A system of behavior modification based on the systematic reinforcement of target behavior through the use of tokens that can be exchanged for other reinforcements.

Cognitive Therapy

A form of psychotherapy that focuses on changing unhelpful or destructive thought patterns in order to alter behavior and emotions.

Aversive Conditioning

A form of behavioral training in which an unpleasant or punitive stimulus is associated with undesirable behavior.