Universal Manufacturing Uses a Weighted-Average Process-Costing System

question 59

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 conversion cost is:

• A) $13.71.
• B) $18.00.
• C) $21.00.
• D) $25.20.
• E) None of the answers is correct.

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Definitions:

Income Inequality

The unequal distribution of income among individuals or groups within a society, often leading to social and economic disparities.

Developing Countries

Nations with a lower level of material well-being, industrialization, and economic development, often characterized by lower income levels and life expectancy.

Textbook's Authors

Individuals who write and compile educational content and materials into textbooks for academic or instructional purposes.

Decades Ago

Referring to a time period of ten years or more in the past.