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

question 116

Multiple Choice

Sarver Company uses the weighted-average method in its process costing system.The Fitting Department is the second department in its production process.The data below summarize the department's operations in March:
$$\begin{array} { | l | r | r | } \hline & \text { Units } & \text { Percentage complete } \\\hline \text { Beginning work in process } &7,100 & 70 \% \\\hline \text { inventory } & & \\\hline \text { Transferred in from the } & 61,000 & \\\text { prior department during } \\\text { April }\\\hline\text { Ending work in process } & 4,600 & 30 \% \\\text { inventory }\\\hline\end{array}$$

The Fitting Department's production report indicates that the cost per equivalent unit for conversion cost for March was $8.24.
How much conversion cost was assigned to the units transferred out of the Fitting Department during March?

• A) $482,287.20.
• B) $502,640.00.
• C) $523,240.00.
• D) $561,144.00.

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Definitions:

Leisure

Free time available to individuals when they are not engaged in work or essential activities, often used for relaxation or recreation.

Labor Supply Curve

A graphical representation that shows the relationship between the quantity of labor willing to be provided and the wage rate.

Nonlabor Income

Income received from sources other than direct employment or work, such as investments, pensions, or transfer payments.

Substitution Effect

The change in the quantity demanded of a good as consumers switch away from more expensive alternatives.