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

question 57

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

• A)$12.93
• B)$14.38
• C)$16.38
• D)$14.73

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Definitions:

Maturity Bond

A bond at the end of its term, at which point the principal amount is due to be paid back to the bondholder.

Coupon Bond

A type of bond that pays the holder periodic interest payments based on the stated coupon rate and then returns the principal at maturity.

Market Yield

The annual income return on an investment, expressed as a percentage of the market price.

Face Value

The nominal value printed on a security or financial instrument, such as a bond or stock, at issue.