Andrews Corporation uses the weighted-average method of process costing. The following information is available for February in its Polishing Department:

Equivalent units of production—direct materials 126,000 EUP
Equivalent units of production—conversion 108,900 EUP
Costs in beginning Work in Process—direct materials $ 73,700
Costs in beginning Work in Process—conversion $ 54,100
Costs incurred in February—direct materials $ 622,300
Costs incurred in February—conversion 781,600

The cost per equivalent unit of production for conversion is:

a) $6.39. b) $4.94. c) $5.52. d) $6.20.

$7,64 (non of the suggested options)

Explanation:

Step 1 Determine the Total Costs Incurred for conversion

Conversion Costs :

Beginning Work in Process          $ 54,100

Add Costs incurred in February   $781,600

Total Costs                                    $835,700

Step 2 Determine cost per equivalent unit of production for conversion

Cost per equivalent unit = Total Costs / Total Equivalent units of production

                                        =  $835,700 / 108,900

                                        =  $7,64

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.