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

question 8

Multiple Choice

Esty 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 7,700 units were started and 6,600 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 70% complete with respect to materials and 10% 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) $253,300
• B) $245,441
• C) $316,098
• D) $265,600

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Definitions:

Supplier Scoring

A method used to evaluate and rank suppliers based on various performance indicators such as quality, delivery time, and cost.

Performance Dimension

Performance dimension refers to the various aspects through which an organization's effectiveness can be evaluated, such as quality, speed, and flexibility.

Price Dimension

Refers to the components that make up the pricing structure of a product or service, including base price, discounts, and surcharges.

Sales Period

The Sales Period is a specific timeframe during which a company focuses on selling a product or service, often aligning with marketing campaigns or seasonal demands.