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

question 2

Multiple Choice

David Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 20,000 units in its beginning work in process inventory that were 80% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $123,200. An additional 65,000 units were started into production during the month. There were 19,000 units in the ending work in process inventory of the Welding Department that were 10% complete with respect to conversion costs. A total of $389,250 in conversion costs were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.)

• A)$7.547
• B)$7.700
• C)$4.634
• D)$5.988

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Definitions:

Sclera

The white, outer layer of the eyeball that provides protection and shape.

Choroid

The vascular layer between the sclera and the retina in the eye, providing oxygen and nourishment to the outer layers of the retina.

Retina

The inner lining at the back of the eye that contains light-sensitive cells (rod and cone cells) which convert light into neural signals for vision.

Cornea

The transparent outer covering of the eye that helps to focus incoming light.