Wind Mill Company Had the Following Department Data: Work in Process

question 61

Multiple Choice

Wind Mill Company had the following department data: Work in process, physical units, August 1 72,000
Completed and transferred out physical units 106,000
Work in process, physical units, August 31 74,000
Materials are added at the beginning of the process.What is the total number of equivalent units for materials in August if the weighted average method is used?

• A)104,000
• B)108,000
• C)180,000
• D)252,000

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Definitions:

Sales Volume Variance

The difference between the actual units sold and the budgeted units sold, multiplied by the standard selling price per unit.

Average Price

The mean price of a good or service calculated by dividing the sum of the prices of all the items by the number of items.

Overhead Volume Variance

Overhead volume variance is the difference between the budgeted overhead at standard production volumes and the actual overhead incurred due to variance in production volume.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels.