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

question 77

Multiple Choice

Stay Corporation uses the weighted-average method in its process costing system. The company's ending work in process inventory consists of 8,000 units, 60% complete with respect to materials and 80% complete with respect to conversion costs. If the total cost in this inventory is $200,000 and if the cost for materials is $16 per equivalent unit for the period, the conversion cost per equivalent unit of the production for the period must be:

• A)$19.25
• B)$16.00
• C)$25.67
• D)$31.25

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Definitions:

Lease

A contract by which one party conveys land, property, services, etc., to another for a specified time, usually in return for periodic payments.

Opportunity Cost

The worth of the best alternative given up due to making a decision.

Opportunity Cost

The value of the next best alternative that is foregone when making a choice.

Tuition

The fee that educational institutions charge for instruction and training.