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

question 105

Multiple Choice

Dufour Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 600 units. The costs and percentage completion of these units in beginning inventory were: A total of 5,700 units were started and 4,900 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 85% complete with respect to materials and 70% 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) $20.92
• B) $21.95
• C) $20.22
• D) $22.71

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Definitions:

Passive Macroeconomic Policy

A strategy where the government does not intervene or adjusts its policy measures in response to economic fluctuations.

Expansionary Gap

The situation that occurs when an economy's output exceeds its potential output, indicating overheating.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of all goods and services produced by an economy in a specific period, expressed in real terms.

Active Approach

Strategies or policies actively implemented by governments or institutions to manage economic variables or outcomes, such as inflation or unemployment.