A Company Uses a Process Costing System

question 88

Multiple Choice

A company uses a process costing system.Its Weaving Department completed and transferred out 120,000 units during the current period.The ending inventory in the Weaving Department consists of 40,000 units (20% complete with respect to direct materials and 60% complete with respect to conversion costs) . Determine the equivalent units of production for the Weaving Department for direct materials and conversion costs assuming the weighted average method.

• A)120,000;120,000
• B)120,000;160,000
• C)128,000;120,000
• D)128,000;144,000
• E)128,000;184,000

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Definitions:

Inelastic

Describes a situation where the demand or supply for a good or service is relatively unresponsive to changes in price.

Elastic

Describes a situation in economics where the supply or demand for a good or service significantly changes in response to changes in price.

Price Ceiling

A legal maximum price that can be charged for a particular good or service, aiming to keep prices affordable.

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded in the market.