Gibbons Company Uses a Process Cost System and the Weighted

question 33

Multiple Choice

Gibbons Company uses a process cost system and the weighted average method.The company had 400 units of product in its work in process inventory at the beginning of the period.During the period 1,500 additional units of product were started.At the end of the period there were 750 units of product in the work in process account.The ending work in process inventory was estimated to be 30% complete.The beginning work in process inventory had a cost of $2,000.There wereProduct costs totaling $42,000 of product costs were added to work in process during the period.The number of equivalent whole units in ending work in process is:

• A) 450.
• B) 750.
• C) 1,275.
• D) 225.

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Definitions:

Net Income

The net earnings of a company resulting from subtracting all costs and taxes from its overall revenue.

Shares Outstanding

The total number of a company's shares that are owned by shareholders, including both public and private entities, available in the market.

Current Asset

Assets that are expected to be converted into cash, sold, or consumed within one year or the normal operating cycle of the business, whichever is longer.

Statement Of Financial Position

Another term for a balance sheet; it shows a company's assets, liabilities, and equity at a specific point in time.