Overland,Inc

question 62

Multiple Choice

Overland,Inc.,uses the weighted-average method in its process costing system.The company's work-in-process inventory on April 30 consists of 25,000 units.The units in the ending inventory are 100% complete with respect to materials and 75% complete with respect to conversion costs.If the cost per equivalent unit is $3.00 for materials and $5.50 for conversion costs,what is the total cost in the April 30 work-in-process inventory?

• A) $212,500.
• B) $178,125.
• C) $159,375.
• D) $109,375.

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Definitions:

Repossess

The act of taking back an item, usually property or a vehicle, from a buyer or borrower due to failure to meet the terms of the repayment agreement.

Direct Liens

Legal claims or encumbrances upon property as security for the payment of a debt or fulfillment of a financial obligation.

Subcontractors

Individuals or companies hired by a primary contractor to perform specific tasks or services as part of a larger project.

Materialmen

Suppliers or vendors of materials, especially in the construction industry, who may have legal rights such as liens against the property they supply materials for.