Lucas Corporation Uses the Weighted-Average Method in Its Process Costing

question 5

Multiple Choice

Lucas Corporation uses the weighted-average method in its process costing system.The company adds materials at the beginning of the process in the Forming Department,which is the first of two stages in its production process.Information concerning operations in the Forming Department in October follows:
What was the materials cost of work in process at October 31?

• A) $3,060
• B) $5,520
• C) $6,000
• D) $6,120

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Definitions:

Ethical Character

The set of qualities related to principles of right and wrong behavior that guide an individual's actions and decisions.

Ending Retained Earnings

The cumulative amount of a company's earnings not distributed to shareholders as dividends but retained by the company for reinvestment or to pay debt.

Stockholder Investments

Funds or assets that shareholders contribute to a corporation in exchange for ownership interest in the form of stock.