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

question 68

Multiple Choice

Inacio Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:
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 three decimal places.
-What are the equivalent units for conversion costs for the month in the first processing department?

• A) 8,400
• B) 8,970
• C) 570
• D) 10,300

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Definitions:

Overapplied Overhead

A situation where the overhead allocated to products exceeds the actual overhead costs incurred, leading to a need for adjustment in cost accounting.

Overapplied Manufacturing Overhead

This occurs when the allocated manufacturing overhead costs are more than the actual overhead costs incurred during a period.

Work in Process Inventory

Goods that are in the process of being manufactured but are not yet complete.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including but not limited to utilities, supervision, and factory equipment maintenance.