Ogden Company Uses the Weighted-Average Method in Its Process Costing

question 54

Multiple Choice

Ogden Company uses the weighted-average method in its process costing system.Information for the month of January concerning Department A,the first stage of the company's production process,follows:
$$\begin{array} { | l | r | r | } \hline & \text { Materials } & \text { Conversion cast } \\\hline \text { Work in process, beginning } & \$ 8,000 & \$ 6,000 \\\hline \begin{array} { l } \text { Current added during } \\\text { January }\end{array} & \$ 40,000 & \$ 32,000 \\\hline \begin{array} { l } \text { Equivalent units of } \\\text { production }\end{array} & 100,000 & 95,000 \\\hline \text { Cost per equivalent unit } & \$ 0.48 & \$ 0.40 \\\hline\end{array}$$
$\begin{array}{|l|r|}\hline \begin{array}{l}\text { Units completed and transferred to the next } \\\text { department }\end{array} & 90,000 \text { units } \\\hline \text { Work in process, ending } & 10,000 \text { units } \\\hline\end{array}$

Materials are added at the beginning of the process.The ending work in process is 50% complete with respect to conversion costs.What cost would be recorded for the ending work-in-process inventory?

• A) $6,800.
• B) $8,800.
• C) $3,400.
• D) $4,400.

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Definitions:

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus.

Pavlov's Dogs

An experiment by Ivan Pavlov demonstrating classical conditioning through the use of dogs, bells, and food, showing how associative learning works.

Little Albert

The subject of a famous psychology experiment by John B. Watson, demonstrating that emotional responses can be conditioned in humans.

Fear / Distress Response

An emotional and physiological reaction to perceived threats or danger, involving the activation of the fight or flight response.