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:

Personal Significance

The importance or relevance of something to an individual, often based on personal values, beliefs, or experiences.

Social Significance

The extent to which something is perceived as important or meaningful within a society or social group, often influencing trends and behaviors.

Involvement

The personal, financial, and social significance of the decision being made.

Low-involvement Products

Goods and services that require minimal thought and effort from the consumer before being purchased, often due to their low cost or frequent use.