Annenbaum Corporation Uses the Weighted-Average Method in Its Process Costing

question 52

Multiple Choice

Annenbaum Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 1,800 units. The costs and percentage completion of these units in beginning inventory were: A total of 9,300 units were started and 7,300 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:
The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs.What are the equivalent units for conversion costs for the month in the first processing department?

• A) 8,630
• B) 7,300
• C) 1,330
• D) 11,100

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Definitions:

Accounting Equation

A fundamental financial principle representing the balance between a company's assets, liabilities, and equity.

Office Furniture

Tangible items such as desks, chairs, and filing cabinets that are used in an office environment.

Cash

A company's currency or currency equivalents that can be accessed immediately or at short notice.

Expenses

Costs incurred in the process of generating revenue, typically categorized into operating and non-operating expenses.