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

question 111

Multiple Choice

Lucas Company uses the weighted-average method in its process costing system.The company adds materials at the beginning of the process in the Forming Department,which is the first of two stages in its production process.Information concerning operations in the Forming Department in October follows:
$\begin{array}{|c|c|c|}\hline&\text { Materials }\\\hline&\text {Units}&\text {Cost}\\\hline \begin{array}{l}\text { Work in process on October } \\1\\\end{array}& 6,000 & \$ 3,000 \\\hline \text { Units started during October } & 50,000 & \$ 25,560 \\\hline \begin{array}{l}\text { Units completed and } \\\text { transferred to the next } \\\text { Department during October }\end{array} & 44,000 & \\\hline\end{array}$

What was the materials cost of work in process on October 31?

• A) $3,060.
• B) $5,520.
• C) $6,000.
• D) $6,120.

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