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

question 78

Multiple Choice

Ermoin 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 4,700 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 75% complete with respect to materials and 20% 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.
-What are the equivalent units for conversion costs for the month in the first processing department?

• A) 5,020
• B) 6,300
• C) 4,700
• D) 320

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Definitions:

Tracking

This involves the process of monitoring and recording the movement or progress of an object, person, or trend over time.

Planning Time Horizon

The future time period over which an organization or individual sets goals and prepares strategies to achieve them.

Movement Analysis

A technique used to analyze the chain or ripple effect that promotions or job losses have on the movements of employees.

Markov Model

A statistical model that predicts future states based on current data and historical transitions, commonly used in various fields including HR for forecasting workforce changes.