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

question 24

Multiple Choice

Grosseiller Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 900 units. The costs and percentage completion of these units in beginning inventory were: A total of 6,400 units were started and 5,200 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 65% complete with respect to materials and 15% 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 conversion costs for the first department for the month is closest to:

• A)$26.89
• B)$22.34
• C)$31.05
• D)$29.57

---

Definitions:

Net Income

Net income refers to the total earnings of a company once all costs, expenses, and taxes are deducted from its total revenue.

Salary Allowances

Specific amounts designated for employees that are over and above their standard salary, often for specific purposes like housing, transportation, or special duties.

Full Time

Employment status characterized by working a minimum number of hours defined by the employer, typically 35-40 hours per week.

Division of Income

The distribution of a company's earnings among various stakeholders, such as dividends for shareholders or reinvestment into the business.