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

question 40

Multiple Choice

Park Company uses the weighted-average method in its process costing system. The Molding Department is the second department in its production process. The data below summarize the department's operations in January.
The accounting records indicate that the conversion cost that had been assigned to beginning work in process inventory was $40,484 and a total of $213,890 in conversion costs were incurred in the department during January.
The cost per equivalent unit for conversion costs for January in the Molding Department is closest to:

• A) $4.823
• B) $4.186
• C) $4.650
• D) $4.590

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Definitions:

Negligence

The failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, leading to harm or damage.

Damages

Compensation claimed by a person who has suffered loss or harm due to the wrongful act of another.

Dry-Cleaning Chemicals

These are the chemicals used in the process of dry cleaning, which is a method of cleaning clothes and textiles using a solvent other than water.

Nominal Damages

A symbolic small amount of money awarded in court to recognize that a legal wrong has occurred, without the plaintiff having suffered significant loss.