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

question 51

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 total cost transferred from the first processing department to the next processing department during the month is closest to:

• A) $476,929
• B) $599,376
• C) $501,600
• D) $525,000

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Definitions:

P-value

A statistical measure indicating the probability of obtaining the observed results, or more extreme results, assuming the null hypothesis is true.

Rejection Region

The range of values in a statistical test for which the null hypothesis is rejected if the test statistic falls within this region.

Critical Value

A point on a statistical distribution representing a threshold at which the null hypothesis is either rejected or not rejected.

One-Tailed Test

A statistical test in which the region of rejection is on only one side of the sampling distribution, used when the research hypothesis is directional.