Miramar, Inc

question 87

Multiple Choice

Miramar, Inc. uses a weighted-average process costing system which recognizes normal spoilage as 5% of good output. During the current period, 14,000 units were started and 10,000 units completed. Materials are added at the beginning of the process, conversion costs occur uniformly, and the inspection point is at the 70% point. Beginning work in process was 6,000 units, 40% complete, and ending work in process 9,000 units, 80% complete. The cost per equivalent unit for material was $1.00 and for conversion costs $3.00.
The total costs in work in process during the period were:

• A) $31,995
• B) $70,600
• C) $73,700
• D) Cannot be determined

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Definitions:

General Checking Account

A type of bank account that allows for the deposit and withdrawal of funds for daily transactions.

Practice's Savings

Refers to the financial reserves or accumulated funds saved by a business or practice.

Workers' Compensation

A form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue their employer for the tort of negligence.

Crushing Injury

A type of injury where a part of the body is subjected to a high degree of force or pressure, often resulting in compression and significant damage to the area.