TryFit CoUses Process Costing to Account for the Production of Energy

question 122

Multiple Choice

TryFit Co.uses process costing to account for the production of energy food bars.Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process.Beginning inventory consisted of $7,000 in materials and $4,000 in conversion costs.April costs were $36,000 for materials and $40,000 for conversion costs.During April 8,000 units were completed.Ending work in process inventory was 4,000 units (100% complete for materials,50% for conversion) .The value of ending inventory using the weighted average method would be closest to:

• A)$15,966.60
• B)$23,133.20
• C)$31,933.20
• D)$65,000.00

---

Definitions:

Cash Receipts

Money received during a period, especially in relation to business transactions.

Cash Payments

Transactions in which payment for goods, services, or obligations is made in cash at the time of the transaction or shortly thereafter.

Financing Activities

Transactions involving external sources of funding, including equity, debt, dividends, and repayment of loans, that are reported in the cash flow statement.

Cash Dividends

payments made to shareholders out of a company’s profits, distributed as cash.