The Morgan Company Uses the Weighted-Average Method in Its Process

question 37

Multiple Choice

The Morgan Company uses the weighted-average method in its process costing system. For a particular department, the company had 54,000 equivalent units of production with respect to conversion costs in March. There were 7,500 units in the department's beginning work in process inventory, two thirds complete with respect to conversion costs. During March, 52,500 units were started and 50,000 were completed and transferred out of the department. The ending work in process inventory in the department?

• A)consisted of 5,000 units.
• B)was 65% complete with respect to conversion costs.
• C)was 40% complete with respect to conversion costs.
• D)consisted of 2,500 units.

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Definitions:

90-Day Note

A short-term debt obligation that matures or is due to be paid 90 days after its issuance.

Accrued Interest

Interest that has been incurred but not yet paid, typically recorded as an expense for the period it relates to.

Year-End

The conclusion of an accounting period, typically the end of the fiscal or calendar year, when companies finalize their financial statements.

60-Day Note

A financial instrument or a loan agreement that requires repayment of the principal amount along with any accrued interest within 60 days.