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

question 24

Multiple Choice

Nabais Corporation uses the weighted-average method in its process costing system. Operating data for the Lubricating Department for the month of October appear below: What were the equivalent units for conversion costs in the Lubricating Department for October?

• A) 31,780
• B) 33,280
• C) 32,200
• D) 29,200

---

Definitions:

Present Value

The current value of a future sum of money or stream of cash flow given a specified rate of return.

Future Value

The value of an investment or a sum of money projected at a future date, calculated by applying interest or growth rates to the present value.

Time Value

The theory that a sum of money is more valuable if it's available immediately, rather than the same amount in the future, because of its earning capabilities.

Interest Rate

The percentage of a loan amount charged by the lender to the borrower for the use of money, typically expressed on an annual basis.