James CoUses Process Costing to Account for the Production of Bottled

question 10

Multiple Choice

James Co.uses process costing to account for the production of bottled energy drinks.Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process.Equivalent units have been calculated to be 10,000 units for materials and 9,000 units for conversion costs.Beginning inventory consisted of $7,000 in materials and $4,000 in conversion costs.April costs were $36,000 for materials and $41,000 for conversion costs.Ending inventory still in process was 4,000 units (100% complete for materials,75% for conversion) .The value of units completed and transferred out using the weighted average method would be closest to:

• A)$37,200.00
• B)$55,800.00
• C)$76,000.00
• D)$79,833.00

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Definitions:

Shareholder-Value Movement

An approach in corporate governance focusing on increasing the returns to shareholders as the primary goal of a company, often influencing its strategic and operational decisions.

Corporate Profits

The earnings of a company after all expenses have been deducted from revenues, indicating the financial health and success of the business.

Procurement Agreement

A contract between two parties where one agrees to supply goods or services to the other, often used in business and government transactions.

Voluntary Enforcement

The practice of adhering to rules or agreements based on personal or organizational choice rather than legal obligation.