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

question 77

Multiple Choice

Stay Corporation uses the weighted-average method in its process costing system. The company's ending work in process inventory consists of 8,000 units, 60% complete with respect to materials and 80% complete with respect to conversion costs. If the total cost in this inventory is $200,000 and if the cost for materials is $16 per equivalent unit for the period, the conversion cost per equivalent unit of the production for the period must be:

• A)$19.25
• B)$16.00
• C)$25.67
• D)$31.25

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Definitions:

Companion Cells

Specialized cells found in the phloem of flowering plants that manage the transport and metabolism of the products of photosynthesis.

Ground Tissue

The tissue in plants that makes up the majority of a plant's body, involved in photosynthesis, storage, and support.

Meristem

Zone of undifferentiated parenchyma cells, the divisions of which give rise to new tissues during plant growth.

Secondary Xylem

The part of a plant that contributes to wood formation, responsible for water transport and structural support.