Lucas Company Uses the Weighted-Average Method in Its Process Costing

question 83

Multiple Choice

Lucas Company uses the weighted-average method in its process costing system.The company adds materials at the beginning of the process in the Forming Department,which is the first of two stages in its production process.Information concerning operations in the Forming Department in October follows:
What was the materials cost of work in process on October 31?

• A) $3,060.
• B) $5,520.
• C) $6,000.
• D) $6,120.

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Definitions:

Accounts Payable

Liabilities representing amounts owed to suppliers or creditors for goods and services received that are not yet paid.

Paid to You

This term generally refers to any payment made directly to an individual, often in the context of salaries, dividends, or other forms of income.

Revenue Accounts

Accounts that track money earned from a company's operations and activities, usually from the sale of goods and services.

Credits

Accounting entries that increase liabilities or decrease assets, representing the opposite of debits.