Forest Company,which Uses a Weighted-Average Process-Costing System,had 7,000 Units in Production

question 42

Multiple Choice

Forest Company,which uses a weighted-average process-costing system,had 7,000 units in production at the end of the current period that were 60% complete.Material A is introduced at the beginning of the process;material B is introduced at the end of the process;and conversion cost is introduced evenly throughout manufacturing.Equivalent-unit production costs follow.
Material A: $12.50
Material B: $2.00
Conversion cost: $6.60
The cost of the company's ending work-in-process inventory is:

• A)$88,620.
• B)$115,220.
• C)$123,620.
• D)$147,700.
• E)some other amount.

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Definitions:

Machine Bureaucracy

A highly structured, formal organization model characterized by a clear hierarchy, rigid rules, and a focus on efficiency and predictability.

External Changes

Alterations in the environment outside an organization that affect its operations, strategies, and success.

Employee Preferences

The specific desires or choices of employees, often regarding workplace conditions, benefits, and types of work.

Operation Efficiency

Refers to the ability of an organization to minimize waste and use resources in the most effective manner to produce goods and services.