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

question 14

Multiple Choice

Hardouin Company uses the weighted-average method in its process costing system.The first processing department,the Welding Department,started the month with 22,000 units in its beginning work in process inventory that were 20% complete with respect to conversion costs.The conversion cost in this beginning work in process inventory was $23,320.An additional 97,000 units were started into production during the month and 101,000 units were completed in the Welding Department and transferred to the next processing department.There were 18,000 units in the ending work in process inventory of the Welding Department that were 40% complete with respect to conversion costs.A total of $529,380 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)$5.300
• B)$5.458
• C)$4.603
• D)$5.108

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Definitions:

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium for a good or a service is not achieved or is not achievable through market means.

Overallocation of Resources

A situation where resources are distributed or utilized excessively in one area at the expense of others, leading to inefficiency.

Rising Health Care Costs

The increase in the price of services and goods within the healthcare sector over time, affecting consumers, insurers, and government budgets.

Real Wages

Wages adjusted for inflation, representing the purchasing power of income earned from work.