Talamoto Co

question 33

Multiple Choice

Talamoto Co. manufactures a single product that goes through two processes — mixing and cooking. The following data pertains to the Mixing Department for September.Material P is added at the beginning of work in the Mixing Department. Material Q is also added in the Mixing Department, but not until units of product are forty percent completed with regard to conversion. Conversion costs are incurred uniformly during the process.
Total equivalent units for conversion under the weighted-average method are calculated to be:

• A) 100,000 equivalent units.
• B) 92,000 equivalent units.
• C) 84,000 equivalent units.
• D) 72,000 equivalent units.
• E) 68,000 equivalent units.

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Definitions:

Work in Process-Assembly Department

Inventory that is in the process of being manufactured but is not yet complete.

Equivalent Unit

A concept used in cost accounting to represent a partial unit of production, allowing for the calculation of costs for partially completed goods.

First-In, First-Out

An inventory valuation method where the first items placed in inventory are the first ones sold, used primarily for cost flow assumption purposes.

Conversion Costs

Costs that are incurred to convert raw materials into finished products, typically including direct labor and manufacturing overhead.