Answer the Following Questions Using the Information Below

question 106

Multiple Choice

Answer the following questions using the information below:
The Townsend Tractor Company manufactures small garden tractors on a highly automated assembly line.Its' costing system uses two cost categories, direct materials and conversion costs.Each tractor must pass through the Assembly Department and the Testing Department.Direct materials are added at the beginning of the production process.Conversion costs are allocated evenly throughout production.Townsend Tractor uses weighted-average costing.
-What amount of conversion costs are assigned to the Townsend Company ending Work-in-Process account for April?

• A)$143,750.00
• B)$145,312.50
• C)$180,000.00
• D)$250,000.00
• E)$116,250.00

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Definitions:

Estimated Cost

An approximation of the financial expenditure associated with a project, operation, or transaction, often used for budgeting purposes.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated for cost of goods sold determination.

Gross Profit

The difference between sales and the cost of goods sold, indicating the profitability of a company's core business activities.

Estimated Cost

An approximation of the financial expenditure associated with a project or production.