A Company That Uses Process Costing Has 1,000 Units in Ending

question 59

Multiple Choice

A company that uses process costing has 1,000 units in ending Work in Process Inventory that
Are 100% complete with respect to materials and 80% complete with respect to conversion costs.The cost per unit for inventory is $2.15 for materials and $1.65 for conversion costs.What is the cost assigned to the ending Work in Process inventory?

• A)$3,470
• B)$3,800
• C)$3,040
• D)$2,150

---

Definitions:

Engel Curve

A graph showing how household expenditure on a particular good or service varies with household income.

Normal Good

A good for which demand increases as the income of an individual increases, holding other factors constant.

Engel Curve

A graphical representation that shows the relationship between a consumer's income and their expenditure on a particular good, illustrating how consumption changes with income.

Utility Function

A representation of how consumer preferences over a set of goods and services are ordered, indicating the level of satisfaction derived from different bundles of goods.