A Company Uses the Weighted Average Method for Inventory Costing

question 74

Multiple Choice

A company uses the weighted average method for inventory costing.At the beginning of a period the production department had 20,000 units in beginning Work in Process inventory which were 40% complete;the department completed and transferred 165,000 units.At the end of the period,22,000 units were in the ending Work in Process inventory and are 75% complete.Compute the number of equivalent units produced by the department.

• A)181,500.
• B)165,000.
• C)173,500.
• D)145,000.
• E)187,000.

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Definitions:

Account Title

An account title is the name given to an account in the general ledger that identifies where transactions are recorded, such as "Revenue," "Accounts Payable," or "Cash."

Credit Side

The credit side of an account is where increases in liabilities, equity, and revenue accounts are recorded, as well as decreases in asset and expense accounts.

Dividends Account

An account used in bookkeeping to track dividends declared by a company to be paid out to its shareholders.

Debit

A bookkeeping record that leads to a rise in a company's assets or a fall in its liabilities on the balance sheet.