Cherrington Company Uses a Process Costing System

question 5

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 materials for May is closest to:

• A) $4.12
• B) $4.50
• C) $4.60
• D) $5.03

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Definitions:

Confidence Level

The percentage that expresses the degree of certainty in the reliability of a confidence interval.

Confidence Interval

A chain of values, emanating from statistical investigations of samples, which is believed likely to enclose the value of a mysterious population parameter.

Regression Line

A line of best fit through a scatter plot of data points that shows the relationship between two variables.

API Gravity Degrees

A measure of how heavy or light a petroleum liquid is compared to water.