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

question 36

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 materials for the month in the first processing department is closest to:

• A)$26.35
• B)$25.85
• C)$26.65
• D)$25.56

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Definitions:

Debt Covenants

These are conditions imposed by lenders (creditors) that borrowers (debtors) must agree to and adhere to as part of the terms of a loan agreement.

Computer System

A combination of hardware, software, and peripherals working together to execute specific tasks or processes.

Bond Indenture

A legal contract outlining the terms and conditions between bond issuers and bondholders, including information such as interest rates and maturity dates.

Debenture Bonds

Financial securities issued by a company that are backed only by the issuer's creditworthiness and general reputation, not by physical assets.