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:

• A) $61,227
• B) $48,071
• C) $42,859
• D) $122,453

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Definitions:

Elastic Demand

Describes a situation where the quantity demanded of a good or service significantly changes in response to changes in its price.

High Tariffs

Elevated taxes imposed on imported goods and services to protect domestic industries or to generate revenue.

Unionized Sectors

Industries or sectors where workers are members of a union, which negotiates wages, working conditions, and other employment terms on their behalf.

Inflation

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.