David Katz' Assembly Department Has Materials Cost at $3 Per

question 143

Multiple Choice

David Katz' assembly department has materials cost at $3 per unit and conversion cost at $6 per unit.There are 9,000 units in ending Work in Process, all of which are 70% complete as to conversion costs and fully complete as to direct materials.How much are total costs to be assigned to inventory if the weighted-average method is used?

• A)$37,800
• B)$64,800
• C)$56,700
• D)$81,000

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Definitions:

Receivables

Funds that customers or clients owe to a business for products or services delivered on credit.

Estimated Bad Debts

The portion of accounts receivable that a company does not expect to collect.

Carrying Amount

The recorded cost of an asset in a company's financial statements, less any accumulated depreciation or amortization.

Allowance for Doubtful Accounts

A contra-asset account used to reduce accounts receivable to its net realizable value by estimating uncollectible debts.