Plemmon Company Adds Materials at the Beginning of the Process

question 42

Multiple Choice

Plemmon Company adds materials at the beginning of the process in the forming department, which is the first of two stages of its production cycle. Information concerning the materials used in the forming department in April follows: Using the average cost method, what is the materials cost of the work in process at April 30 (rounded to nearest dollar) ?

• A)$7,154
• B)$6,200
• C)$7,750
• D)$6,417

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Definitions:

Gain (Loss)

The financial result that occurs when the selling price of an asset is higher (gain) or lower (loss) than its purchase price.

Compute

To calculate or process by means of a computer or mathematical operations.

Held To Maturity

A classification for debt securities which an investor intends and is able to hold until maturity, recognizing interest income over the term.

Face Value

The nominal or dollar value printed on a security or instrument, such as a bond or stock, representing its legal value.