Paxton Company Uses the Weighted-Average Method in Its Process Costing

Multiple Choice

Paxton Company uses the weighted-average method in its process costing system.The Moulding Department is the second department in its production process.The data below summarize the department's operations in January:
$\begin{array}{|l|r|r|}\hline&\text { Units}&\text { Percentage complete }\\\hline \text { Beginning work in process } & 2,700 & 80 \% \\\text { inventory } & \\\hline \begin{array}{l}\text { Transferred in from the } \\\text { prior department during }\end{array} & 57,000 & \\\text { January }\\\hline \begin{array}{l}\text { Completed and transferred } \\\text { to the next department } \\\text { during January }\end{array} & 50,300 & \\\hline \begin{array}{l}\text { Ending work in process } \\\text { inventory }\end{array} & 9,400 & 20 \% \\\hline\end{array}$
The accounting records indicate that the conversion cost that had been assigned to beginning work-in-process inventory was $10,973,and a total of $268,107 in conversion costs were incurred in the department during January.
What was the cost per equivalent unit for conversion costs for January in the Moulding Department? (Round off to three decimal places.)

A) $5.348.
B) $4.038.
C) $5.080.
D) $4.704.