A company has three production departments and the only product it manufactures goes through the three departments sequentially. The company's cost accounting system will have:

to. Three Finished Goods Inventory accounts, one for each department, and three Work-in-Process Inventory accounts.

b. Three Work-in-Process Inventory accounts, one for each department, and one Finished Good Inventory account.

c. One Work-in-Process Inventory account and one Finished Goods Inventory account.

d. A Work-in-Process Inventory account in the first department, a Work-in-Process Inventory account in the second department, and a Finished Goods Inventory account in the third department.

2. At the beginning of a period, the initial work-in-process inventory consisted of 800 units. These units had 70% of the direct raw material and 40% of the conversion costs (direct labor and indirect costs). During the period 1,200 new units were started. At the end of the period, 1,400 units had been completed and transferred to finished goods inventory. Units that remained in the ending work-in-process inventory had 80% of the direct raw material and 50% of the conversion costs. The equivalent production for the period was:

3. The costs in the initial inventory of goods in process and the new costs added during the period were the following:

The production of complete equivalent units for the period was 1,320 equivalent units with respect to raw material and 1,380 with respect to conversion costs. The average cost of a full equivalent unit was:

to. $ 7.56 b. $ 10.61 c. $ 15.00 d. $ 5.33