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

question 172

Multiple Choice

Fabert Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 16,000 units in its beginning work in process inventory that were 40% complete with respect to conversion costs. An additional 60,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. During the month 65,000 units were completed in the Assembly Department and transferred to the next processing department. There were 11,000 units in the ending work in process inventory of the Assembly Department that were 50% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month?

• A) 65,000
• B) 70,500
• C) 64,100
• D) 55,000

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Definitions:

Securities

Financial instruments representing ownership (stocks), a debt agreement (bonds), or rights to ownership (derivatives).

Ownership

The legal right to possess, use, control, and dispose of property or an item.

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership and a claim on its profits.

Corporation

A legal entity recognized by law as separate from its owners, with its own rights, privileges, and liabilities.