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

question 91

Multiple Choice

Hanson Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: 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 conversion costs for the first department for the month is closest to:

• A) $46.81
• B) $50.98
• C) $48.55
• D) $48.39

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Definitions:

FIFO

"First In, First Out," an inventory valuation method where the oldest items are sold first, affecting costs and inventory valuation.