Smith Manufacturing Uses the Weighted Average Process Costs Method Units Still in Process at the End of the Period

question 11

Multiple Choice

Smith Manufacturing uses the weighted average process costs method.Smith has provided the follow data: $$\begin{array} { l r r r } & \text { Total Units/Cost } & \text { Material } & \text { Conversion } \\\hline \text { Beginning inventory } & 25,000 & & \\\text { Units started during period } & 175,000 & & \\\text { Units completed during period } & 185,000 & & \\\text { Costs from beginning inventory } & \$ 641,250 & \$ 561,250 & \$ 80,000 \\\text { Costs incurred during period } & \$ 6,868,750 & \$ 4,038,750 & \$ 2,830,000\end{array}$$ Units still in process at the end of the period are 100% complete as to material and 60% complete as to conversion.What is the cost of materials allocated to units completed during the period?

• A)$4,255,000
• B)$4,600,000
• C)$4,038,750
• D)$6,868,750
• E)None of the above.

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Definitions:

Investment Opportunity

A potential financial venture or asset purchase that could yield returns in the future.

ROI

Return on Investment, a metric used to evaluate the efficiency of an investment or compare the efficiency of several different investments.

Residual Income

The amount of income that exceeds the minimum rate of return expected on investments or capital.

Investment Opportunity

A potential financial venture, property, or stock that could generate a favorable return.