Cherrington Company Uses a Process Costing System

question 32

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:



-Assuming that Cherrington Company uses the weighted-average method, what is the cost per equivalent unit for conversion costs for May to the nearest whole cent?

• A) $4.19
• B) $4.00
• C) $3.64
• D) $3.83

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Definitions:

Masterpiece Sculptures

Exceptionally high-quality sculptures that are widely recognized for their artistic, historic, or cultural significance.

Simple Delivery Contract

A contract that is fulfilled by the straightforward delivery of a product or service without the need for complicated procedures or requirements.

Merchant

An individual or business entity engaged in the selling and purchasing of goods or services, often involved in trade at a larger scale.

Destroyed

To damage something so badly that it no longer exists, works, or has value.