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

question 1

Multiple Choice

Ogden Company uses the weighted-average method in its process costing system.Information for the month of January concerning Department A,the first stage of the company's production process,follows: Materials are added at the beginning of the process.The ending work in process is 50% complete with respect to conversion costs.What cost would be recorded for the ending work-in-process inventory?

• A) $6,800.
• B) $8,800.
• C) $3,400.
• D) $4,400.

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Definitions:

Command Economy

An economic system where the government makes all decisions on the production and consumption of goods and services.

Free Enterprise

An economic system based on private ownership and the freedom of individuals to start and manage their own businesses.

Laissez-Faire Economy

An economic system in which transactions between private parties are free from government intervention such as regulations, privileges, tariffs, and subsidies.

Coordinating Mechanism

A system or process used to organize and harmonize different activities or parties so that they work together efficiently towards a common goal.