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

question 43

Multiple Choice

Fuller Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 700 units. The costs and percentage completion of these units in beginning inventory were:
A total of 9,800 units were started and 8,800 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 85% complete with respect to materials and 70% 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) $620,100
• B) $646,832
• C) $542,106
• D) $596,500

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Definitions:

Inventories

The raw materials, work-in-progress goods, and finished goods that a company holds for the purpose of sale in the future.

Consumer Durables

Goods that are not for immediate consumption and are able to be used over a longer period, like appliances and vehicles.

Equipment And Software

Tangible assets such as machinery and tools, and intangible assets like software, used in the operation of a business to produce goods or services.

Productive Capacity

The maximum output a company or economy can produce with its current resources, also reflecting the efficiency of production processes.