The Round Table Company Makes Carpenter's Squares and Uses a Process

question 98

Short Answer

The Round Table Company makes carpenter's squares and uses a process costing system. There is no spoilage. Manufacturing goes through three departments: Forming, Finishing, and Packing. Unit data for these departments are given below: $\begin{array}{lrrr}&\text { Forming } & \text { Finishing } & \text { Packing }\\\text { Beginning inventory units } & & & \\(80 \% \text { complete) } & 1,000 & 2,000 & 3,000 \\\text { Units started } & 8,000 & ? & ? \\\text { Ending inventory units } & & & \\(20 \% \text { complete) } & 3,000 & 4,000 & 1,000\end{array}$

The Finishing Department adds materials at the point where processing is 50 percent complete. The equivalent units for materi al s in the Finishing Department is
$\begin{array}{cr}\text { Weighted Average } & \text { FIFO } \\\text { a. } 4,000 & 2,000 \\\text { b. } 4,800 & 3,200 \\\text { c. } 6,000 & 3,000 \\\text { d. } 8,000 & 8,000\end{array}$
E)none of the above

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Definitions:

Diversification

An investment strategy aimed at reducing risk by allocating investments among various financial instruments, industries, or other categories.

Vertical Integration

A strategy where a company expands its operations into different stages of production or distribution within the same industry.

Consolidated Cash Account

A combined account that aggregates the cash balances of a parent company and its subsidiaries to give a total cash figure in consolidated financial statements.

Business Combination

The process of merging or acquiring another company to expand operations, enter new markets, or acquire new technologies.