Hache Company Uses the Weighted-Average Method in Its Process Costing

question 66

Multiple Choice

Hache Company uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 17,000 units in its beginning work in process stock that were 20% complete with respect to conversion costs. The conversion cost in this beginning work in process stock was £7,480. An additional 89,000 units were started into production during the month and 92,000 units were completed in the Welding Department and transferred to the next processing department. There were 14,000 units in the ending work in process stock of the Welding Department that were 90% complete with respect to conversion costs. A total of £202,400 in conversion costs were incurred in the department during the month.
What would be the cost per equivalent unit for conversion costs for the month (Round off to three decimal places.)

• A)£1.965
• B)£2.200
• C)£2.007
• D)£2.274

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Definitions:

Future Short Interest Rate

An estimation or prediction of the interest rates at a future point in time, often used in the valuation of interest rate derivatives.

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U.S. Treasury securities that offer periodic interest payments until maturity, at which point the face value is repaid to the holder.

Principal

The outstanding balance on a loan.