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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Definitions:

Management Fees

The fees paid to fund managers for their services, typically a percentage of the assets under management, in investment funds or portfolios.

Incentive Bonuses

Additional compensation provided to employees as a reward for achieving performance targets or specific goals.

Index Benchmarks

Standardized measures used to compare the performance of investments or investment managers against a representative segment of the market.

Initial Investment

The amount of money used to start an investment, which can influence the future return and risk level of the investment.