Quinn Corporation Produces a Product That Passes Through Two Processes $\quad$

question 112

Multiple Choice

Quinn Corporation produces a product that passes through two processes. During October, the first department transferred 20,000 units to the second department. The cost of the units transferred was $60,000. Materials are added uniformly in the second process. The following information is provided about the second department’s operations during October:
Units, beginning work in process (1/3 complete) $\quad$$\quad$$\quad$ 6,000
Units, ending work in process ( $1 / 2$ complete) $\quad$$\quad$ 4,000
-Refer to the figure.What are the equivalent units for those transferred in from the prior department using weighted average?

• A)14,000 units
• B)16,000 units
• C)20,000 units
• D)26,000 units

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Definitions:

Budgeted Sales

The anticipated revenue from goods or services sold, set during the budgeting process for a specific time period.

Credit Sales

Sales made by a business where the customer purchases goods or services on credit and payment is received at a later date.

Finished Goods Inventory

The stock of completed products that are ready for sale but have not yet been sold.

Variable Manufacturing Overhead

Costs that vary with the level of production, such as utilities for manufacturing premises and wages for hourly production workers.