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

question 4

Multiple Choice

Sumter Corporation uses the weighted-average method in its process costing system. The following data pertain to operations in the first processing department for a recent month:

-How much cost,in total,was assigned to the units transferred out to the next department during the month?

• A) $549,500
• B) $584,400
• C) $502,600
• D) $535,000

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Definitions:

General Ledger

A comprehensive record of all financial transactions over the life of an organization, serving as the primary source for preparing financial statements.

Inventory

The raw materials, work-in-process products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

Conversion Costs

The costs required to convert raw materials into finished products, which include labor costs and manufacturing overhead.

Direct Costs

Costs that can be directly traced to the production of specific goods or services, such as raw materials and direct labor.