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:

Taft-Hartley Act

A 1947 U.S. federal law that restricts the activities and power of labor unions.

Collective Bargaining

Collective bargaining is a process where employers and employees negotiate terms and conditions of employment, usually through labor unions.

Right-to-Work Laws

Legislation that prohibits union security agreements, ensuring that employment is not conditional upon union membership or fees.

Taft-Hartley Act

A 1947 federal law that restricts the activities and power of labor unions in the United States.