Kimbeth Manufacturing Makes Dust Density Sensors (DDS), a Safety Device

question 95

Multiple Choice

Kimbeth Manufacturing makes Dust Density Sensors (DDS) , a safety device for the mining industry. The company uses a process costing system and has only a single processing department. The following information pertains to operations for the month of May:
$\begin{array} { | l | r | } \hline & \text { Units } \\\hline \text { Beginning work in process inventory } & 16,000 \\\hline \text { Started into production during May } & 100,000 \\\hline \text { Completed during May } & 92,000 \\\hline \text { Ending work in process inventory } & 24,000 \\\hline\end{array}$
The beginning work-in-process inventory was 60% complete with respect to materials and 20% complete with respect to conversion costs. The ending work-in-process inventory was 90% complete with respect to materials and 40% complete with respect to conversion costs. The costs were as follows:
$\begin{array}{|l|r|r|}\hline & \text { Materials } & \text { Conversion } \\\hline \begin{array}{l}\text { Beginning work-in-process } \\\text { inventory }\end{array} & \$ 54,560 & \$ 35,560 \\\hline \text { Costs incurred during May } & \$ 468,000 & \$ 574,040 \\\hline\end{array}$


-Using the weighted-average method,the total cost of the units in ending work-in-process inventory is closest to which of the following?

• A) $156,960.
• B) $86,400.
• C) $153,960.
• D) $154,800.

---

Definitions:

Rental Payments

Periodic payments made by a lessee to a lessor for the use of a property, equipment, or other asset.

Tenant

A tenant is an individual or entity that occupies land or property rented from a landlord under a lease agreement.

Adjusting Entry

An accounting record made to update the financial position of a company before financial statements are prepared.

Fiscal Period

A specific duration of time for which a business or government reports its financial performance, could be a quarter, a year, or any other defined period.