The Fox Company Uses the Weighted Average Method

question 103

Multiple Choice

The Fox Company uses the weighted average method.The beginning work in process consists of 20,000 units (100% completed as to materials and 50% complete as to conversion costs) .The number of units completed was 80,000.The ending work in process consists of 10,000 units (100% complete as to materials and 20% complete as to conversion costs) .Calculate the equivalent units of production for conversion costs.

• A) 110,000
• B) 82,000
• C) 80,000
• D) 90,000

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Definitions:

Gross Profit

The financial metric that represents the difference between sales revenue and the cost of goods sold, before deducting overheads, payroll, taxation, and interest payments.

Profit Center

A branch or division of a company that is treated as a separate entity for the purpose of calculating its profitability.

Profit Center

A division or segment of a company that is directly responsible for generating its own revenue and profit through its activities.

Cost Center

A department or segment of a business that does not directly generate revenue but incurs costs, focusing instead on controlling expenses.