Baker Company Uses the Weighted-Average Method in Its Process Costing

question 7

Multiple Choice

Baker Company uses the weighted-average method in its process costing system.The Assembly Department started the month with 8,000 units in its beginning work in process inventory that were 90% complete with respect to conversion costs.An additional 95,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department.There were 11,000 units in the ending work in process inventory of the Assembly Department that were 90% complete with respect to conversion costs. What were the equivalent units of production for conversion costs in the Assembly Department for the month?

• A) 92,000.
• B) 94,700.
• C) 98,000.
• D) 101,900.

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Definitions:

Normal Good

A good for which demand increases as consumer income rises, and decreases when consumer income falls, all other factors being constant.

Decrease in Income

A reduction in the amount of money received by an individual or entity, which can affect consumption and saving behaviors.

Downward-sloping Demand Curve

A graph showing that the quantity demanded of a good or service varies inversely with its price, other things being equal.

Equilibrium Price

The price at which the quantity of a product demanded by consumers equals the quantity supplied by producers.