Use the Information Below to Answer the Following Question(s)

question 29

Multiple Choice

Use the information below to answer the following question(s) .Father Time Clock Shop manufactures clocks on an automated assembly line.It utilizes two cost categories: direct materials and conversion costs.Each product must pass through the Assembly Department and the Testing Department.Direct materials are added at the beginning of production, while conversion costs are allocated evenly throughout production, and the company uses weighted-average costing.Data for the Assembly Department are:

-What is the total amount debited to the work-in-process account during the month of June at Father Time Clock Shop?

• A)$450,000
• B)$2,000,000
• C)$2,270,000
• D)$2,450,000
• E)$3,250,000

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Definitions:

Proportionately Adjusted Balance Sheet

A financial statement that adjusts assets, liabilities, and equity according to a specific factor to reflect a more accurate financial position.

Contractual Agreement

A legally binding agreement between parties that outlines the terms and conditions of their arrangement and obligations.

Equity Method

An accounting technique used by firms to assess the profits earned by their investments in other companies, where the investment is recorded at cost and adjusted according to the investor's share of the investee's profit or loss.

Proportionately Adjusted Balance Sheet

Proportionately Adjusted Balance Sheet involves adjusting the assets, liabilities, and equity of a company in a balance sheet to reflect a fair representation of financial position post any significant changes.