The Following Information Is Provided by Galloway Company

question 113

Multiple Choice

The following information is provided by Galloway Company:

The units were 80% complete for materials and 30% complete for conversion costs.
How much are the total costs for which Galloway has to account (i.e. ,its total costs to account for) ?

• A)$26,500
• B)$24,500
• C)$39,000
• D)$51,000

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Definitions:

Periodic Inventory System

A periodic inventory system is an accounting method where inventory and cost of goods sold are calculated at set intervals, such as monthly or annually.

FIFO

A method of inventory valuation where the first items purchased are the first ones to be sold.

LIFO

A method of inventory valuation where the last items added to inventory are the first ones to be used or sold, standing for Last In, First Out.

Weighted-Average

A calculation method that takes into account the varying degrees of importance of the numbers in a dataset.