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

question 214

Multiple Choice

Fuller Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 700 units. The costs and percentage completion of these units in beginning inventory were: A total of 9,800 units were started and 8,800 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 85% complete with respect to materials and 70% complete with respect to conversion costs.The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: (Round "Cost per equivalent unit" to 3 decimal places.)

• A) $77,994
• B) $73,308
• C) $104,725
• D) $89,016

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Definitions:

Standard Cost System

A cost accounting system that assigns expected costs to products or services, used for budgeting and variance analysis.

Cereal

A food product made from processed grains, typically eaten as breakfast and often enriched with vitamins and minerals.

Materials Quantity Variance

The difference between the expected and actual quantity of materials used in production, reflecting efficiency in materials usage.

Materials Standards

The established specifications regarding the quality and quantity of materials to be used in production.