Stover Company Uses the Weighted-Average Method in Its Process Costing $\quad$

question 52

Multiple Choice

Stover Company uses the weighted-average method in its process costing system. Information concerning Department A for the month of June follows: $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ Materials
$\begin{array}{lrr}&\text { Units}&\text { costs }\\ \text { Work in process, beginning } &17,000 &£ 12,800\\ \text { Started in June. } &82,000&69,700\\ \text { Units completed } &85,000\\ \text { Work in process, ending } &14,000\end{array}$

All materials are added at the beginning of the process. The cost per equivalent unit for materials costs is closest to:

• A)£0.83.
• B)£0.85.
• C)£0.97.
• D)£1.01.

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Definitions:

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