Seaside Company Uses the Weighted-Average Method in Its Process Costing

question 45

Multiple Choice

Seaside Company uses the weighted-average method in its process costing system. The Sanding Department started the month with 8,000 units in its beginning work-in-process inventory that were 70% complete with respect to conversion costs. An additional 69,000 units were transferred in from the prior department during the month to begin processing in the Sanding Department. There were 5,000 units in the ending work-in-process inventory of the Sanding Department that were 20% complete with respect to conversion costs.
What were the equivalent units of production (EUPs) for conversion costs in the Sanding Department for the month?

• A) 67,400 EUPs
• B) 73,000 EUPs
• C) 72,000 EUPs
• D) 66,000 EUPs

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Definitions:

Principal-Agent Problem

A dilemma in which one party (the agent) may not act in the best interest of another party (the principal) who has delegated some decision-making authority to the agent.

Political Process

The set of activities involved in the acquisition and exercise of power within a governmental or organizational setting.

Voters' Interest

The concerns or benefits that motivate individuals to participate in political activities, including voting.

Government Failure

Inefficiencies in resource allocation caused by problems in the operation of the public sector (government). Specific examples include the principal-agent problem, the special-interest effect, the collective-action problem, rent seeking, and political corruption.