The Morgan Company Uses the Weighted-Average Method in Its Process

question 60

Multiple Choice

The Morgan Company uses the weighted-average method in its process costing system.For a particular department,the company had 54,000 equivalent units of production with respect to conversion costs in March.There were 7,500 units in the department's beginning work-in-process inventory,two-thirds complete with respect to conversion costs.During March,52,500 units were started and 50,000 were completed and transferred out of the department.What was the ending work-in-process inventory in the department?

• A) Consisted of 5,000 units.
• B) Consisted of 2,500 units.
• C) 65% complete with respect to conversion costs.
• D) 40% complete with respect to conversion costs.EI equiv.units = 54,000 - 50,000 = 4,000 EU therefore 4,000/10,000 = 40% complete

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Definitions:

Population Mean

The average of all the values in a population, calculated by summing all the values and dividing by the count of values.

Sample Mean

The average value computed from a sample of data, used to estimate the population mean.

Descriptive Measures

Statistical calculations used to summarize or describe characteristics of a dataset, including measures like count, mean, median, and mode.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution, aiming to provide an accurate description of the entire data set.