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

question 289

Multiple Choice

Lap Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a particular department consisted of 80,000 units, 100% complete with respect to materials and 25% complete with respect to conversion costs. The total dollar value of this inventory was $226,000. During the month, 150,000 units were transferred out of the department. The costs per equivalent unit for the month were $2.00 for materials and $3.50 for conversion costs. The cost of the units completed and transferred out of the department was:

• A) $681,000
• B) $765,000
• C) $821,000
• D) $825,000

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Definitions:

Unblock Will

The process of removing psychological or motivational barriers to enable a person to act according to their intentions or desires.

Proportionate

Characterized by a correspondence or balance between parts or elements, in terms of size, quantity, or importance.

Context

The set of circumstances or background information that surrounds a particular event, situation, or issue, influencing its understanding and interpretation.

Normal Anxiety

A natural, often temporary, reaction to stress or uncertainty, which can be a motivating force or, when in moderate levels, not indicative of a mental health disorder.