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

question 69

Multiple Choice

Adam Company uses the weighted-average method in its process costing system. The following information for the Assembly Department was obtained from the accounting records for September (all materials are added at the beginning of the process) :
$\begin{array}{l}\begin{array} {| l | r | r | } \hline & \text { Number of Units } & \begin{array} { r } \text { Labour and overhead } \\\text { percentage complete }\end{array} \\\hline \begin{array} { l } \text { Work in process inventory, } \\\text { Sept. 1 }\end{array} & 60,000 & 15 \% \\\hline \begin{array} { l } \text { Transferred in the during } \\\text { the month }\end{array} & 105,000 & \\\hline \begin{array} { l } \text { Work in process inventory, } \\\text { Sept. 30 }\end{array} & 40,000 & 20 \% \\\hline\end{array}\\\\\\\\\begin{array} { |l | r | r | r | } \hline & \text { Transferred In } & \text { Materials } & \begin{array} { r } \text { Labour and } \\\text { overhead }\end{array} \\\hline \begin{array} { l } \text { Beginning work-in- } \\\text { process inventory }\end{array} && \$ 30,000 & \$ 16,000 \\\hline \begin{array} { l } \text { Cost added during } \\\text { the month }\end{array} & &\$ 63,000 & \$ 320,000 \\\hline\end{array}\end{array}$

-What are the equivalent units of production for material for the month?

• A) 105,000 units.
• B) 145,000 units.
• C) 122,000 units.
• D) 165,000 units.

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