Heller Corporation uses the weighted-average method in its process costing syste
ID: 2426829 • Letter: H
Question
Heller Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:
Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed.
The total cost transferred from the first processing department to the next processing department during the month is closest to: (Round your cost per equivalent unit answers to 2 decimal places.)
Which of the following companies would be most likely to use a process costing system?
- ship builder
- oil refinery
- movie studio
- hospital
Heller Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:
O $503,015 $478,836 O $463,905 O $472,436Explanation / Answer
Details Units % material Equivalent Units Material % Conversion Equivalent units Conversion Units completed & Transferred 16,900 100 16,900.00 100.00 16,900.00 Units in ending WIP 1,800 60 1,080.00 25.00 450.00 Total Units 17,980.00 17,350.00 Total Costs Materials Conversion Total Cost of beginning WIP 13,000 7,800 20,800.00 Cost added during month 162,305 299,295 461,600.00 Total cost 175,305 307,095 482,400 Equivqlent units produced 17,980 17,350 Cost of Equivalent Unit $ 9.75 $ 17.70 Cost of units transfrerred out Details Materials Conversion Total Cost of Equivalent Unit $ 9.75 $ 17.70 Equivalent Units produced 16,900 16,900 Total costs 164,775 299,130 $ 463,905.00 So Answer is $ 463,905 Oil refinery is most likely to use process costing among the list given.
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