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

question 20

Multiple Choice

Loll Company uses the weighted-average method in its process costing system.Operating data for the first processing department for the month of June appear below: According to the company's records,the conversion cost in beginning work in process inventory was $46,915 at the beginning of June.Additional conversion costs of $825,183 were incurred in the department during the month. What was the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places. )

• A)$8.420
• B)$6.934
• C)$8.530
• D)$8.322

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Definitions:

Earnings Reinvestment

The practice of reinvesting a company's earnings back into its business to fund growth activities rather than distributing them as dividends to shareholders.

Growth Rate

The percentage increase in a company's revenue or profit over a specific period.

Cost of Equity Capital

The return a company requires to decide if an investment meets capital return requirements and is typically used in the capital asset pricing model.

Price/Earnings Ratio

A valuation metric for a company that measures its current share price relative to its per-share earnings.