Cherrington Company Uses a Process Costing System

question 70

Multiple Choice

Cherrington Company uses a process costing system. For May, the month just completed, the beginning work in process inventory consisted of 50,000 units which were 60% complete with respect to conversion costs. The ending inventory for the month was 20% complete with respect to conversion costs. A summary of cost data for the month follows:



-Using the weighted-average method, the cost per equivalent unit of conversion cost for May is closest to:

• A) $5.65
• B) $5.83
• C) $6.00
• D) $6.41

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Definitions:

Writing

The physical manifestation of language in the form of symbols or marks on surfaces like paper, used to communicate thoughts and ideas.

Benefit

An advantage or profit gained from something, often used in legal terms to describe gains in contracts or employment.

Debt

Money that is owed or due to another individual, entity, or institution.

Enforceable

Capable of being imposed by law or through legal action, usually in reference to contracts, agreements, or regulations.