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

question 135

Multiple Choice

Saada Corporation 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 cost per equivalent unit for conversion cost for March was $5.99.
How much conversion cost was assigned to the units transferred out of the Fitting Department during March?

• A) $332,445.00
• B) $375,573.00
• C) $328,012.40
• D) $353,410.00

---

Definitions:

Fixed Manufacturing Overhead

Costs that remain constant in total regardless of the level of production, such as salaries and rent for factory buildings.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or services, calculated before the accounting period begins based on estimated costs.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production or sales, including expenses like rent, salaries, and utilities.

Absorption Costing

An accounting approach that includes all manufacturing costs (both variable and fixed) in the cost of a product, used for external reporting.