The Following Information Has Been Gathered for the Green Division

question 66

Multiple Choice

The following information has been gathered for the Green Division: Compute the Green Division's residual income.

• A)$1,800
• B)$2,700
• C)$3,600
• D)$5,400

---

Definitions:

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated as beginning inventory plus purchases less cost of goods sold.

Conversion Costs

are the costs required to convert raw materials into finished goods, comprising direct labor and manufacturing overhead.

Weighted-Average Method

An inventory costing method that calculates the cost of ending inventory and the cost of goods sold based on the weighted average cost of all items available for sale.

Welding Department

A specific division within a manufacturing facility focused on welding processes, often critical in the fabrication and assembly of metal parts.