Shiner Rock Car Wax Uses a Process Costing System

question 27

Multiple Choice

Shiner Rock Car Wax uses a process costing system.The company has three processing departments-mixing, melting, and packaging.Ending Work in Process Inventory of the Mixing Department consists of 3,000 cans of wax in process carrying a total cost of $14,400.These units are 80% complete with respect to materials.The equivalent cost per unit for materials and conversion costs is $2.00 and $8.00, respectively.With regard to conversion costs, what percentage of completion is the ending inventory?

• A)100%
• B)40%
• C)80%
• D)60%

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Definitions:

Grades

Marks or scores assigned to a student's work to assess academic performance.

Hours

Units of time equivalent to 60 minutes, often used to measure the duration of events or the operational times of businesses and services.

Cause-and-effect

The principle that an action or event will produce a certain response or outcome in the natural or human-made world.

Correlational Data

Data used to measure and describe the degree to which two or more variables are related, without inferring a cause-and-effect relationship.