The Following Data Were Taken from the Accounting Records of the Hazel

question 42

Multiple Choice

The following data were taken from the accounting records of the Hazel Corporation,which uses the weighted-average method in its process costing system:
$$\begin{array} { | l | l | } \hline \begin{array} { l } \text { Beginning work in process inventory } \\\text { (100\% complete as to materials; } 70 \%\end{array} & 30,000 \text { units } \\\text { complete as to corversion) } & \\\hline \text { Started in process during the period } & 90,000 \text { units } \\\hline \begin{array} { l } \text { Ending work in process inventory (100\% } \\\text { complete as to materials; } 60 \% \text { complete as } \\\text { to corversion) }\end{array} & 20,000 \text { units } \\\hline\end{array}$$
What were the equivalent units of production for conversion costs?

• A) 102,000 units.
• B) 112,000 units.
• C) 111,000 units.
• D) 100,000 units.

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Definitions:

Variable Cost Concept

A cost that varies directly with the level of production or sales, such as materials and labor.

Unit Selling Price

The amount of money charged for selling one unit of a product or service.

Markup Percentage

Markup percentage is a measure of how much the selling price of an item or service exceeds its cost, expressed as a percentage of the cost.

Variable Cost Concept

The principle that costs vary in proportion to the level of production or business activity, meaning they increase with more output and decrease with less output.