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

question 97

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.
-What are the equivalent units for conversion costs for the month in the first processing department?

• A) 9,300
• B) 8,065
• C) 7,400
• D) 665

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Definitions:

Significant Change

An alteration that has a major impact on a company, industry, or market, often requiring adjustments to operations or strategies.

Consumers' Desire

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Five Fundamental Questions

The five fundamental questions refer to key economic questions any economy faces about what goods to produce, how to produce them, for whom to produce, how to accommodate change, and how to promote innovation.