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

question 310

Multiple Choice

Mundes Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in its Painting Department consisted of 3,700 units that were 60% complete with respect to materials and 40% complete with respect to conversion costs. The cost of the beginning work in process inventory in the department was recorded as $10,500. During the period, 9,700 units were completed and transferred on to the next department. The costs per equivalent unit for the period were $5.70 for material and $6.70 for conversion costs. The cost of units transferred out during the month was:

• A) $64,990
• B) $66,600
• C) $120,280
• D) $84,200

---

Definitions:

Price Maker

A market participant with the power to influence the price of a good or service by altering its supply, demand, or both.

Downward Sloping

Refers to a graph line that shows a decrease in price leading to an increase in demand, commonly illustrated in supply and demand curves.

Economic Profits

Profit or loss calculated by subtracting total costs, including opportunity costs, from total revenues to determine overall effectiveness.

Average Rate

The mean quantity or figure computed by dividing the sum of all measured quantities by the number of quantities.