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

question 82

Multiple Choice

Gunes Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were:
A total of 8,500 units were started and 7,400 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:
The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs.
Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.
-The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to:

Identify the strategic importance of distribution network choices in achieving supply chain objectives.

Understand the relationship between distribution network design and delivery performance, including cost, speed, and customer service.

Acknowledge the impact of product characteristics on distribution network design.

Comprehend the role and advantages of various distribution strategies such as drop-shipping and in-transit merge.

Definitions:

Divestiture

The process of selling off a subsidiary company or business division.

Split-up

A corporate action where a company divides its business operations into two or more independently run companies.

Complementary Resources

Assets or inputs that when used together enhance the value or productivity of each other in the production process.

Corporate Restructurings

The process of significantly changing a company's operations, structure, or financial setup, often to improve profitability or efficiency.