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

question 111

Multiple Choice

Sarver Company uses the weighted-average method in its process costing system.The Fitting Department is the second department in its production process.The data below summarize the department's operations in March: The Fitting Department's production report indicates that the cost per equivalent unit for conversion cost for March was $8.24.
How much conversion cost was assigned to the units transferred out of the Fitting Department during March?

• A) $482,287.20.
• B) $502,640.00.
• C) $523,240.00.
• D) $561,144.00.

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Definitions:

Distributive Property

A property in algebra that allows you to multiply a sum by multiplying each addend separately and then add the results.

Like Terms

Terms in an algebraic expression that have the same variables raised to the same power and can therefore be combined.

Simplify Expression

The process of performing all possible arithmetic operations within an expression to reduce it to its simplest form.

Distributive Property

A property in algebra that allows for the multiplication of a single term and two or more terms inside a set of parentheses.