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:

Reciprocal Helping

A social behavior where an individual provides help to another with the expectation that the help will be returned in the future, promoting cooperation and social bonding.

Deindividuation

A psychological state where an individual loses self-awareness and self-restraint, often occurring in group settings that promote anonymity.

Lowballing Strategy

A sales technique where an item is initially offered at a lower price than is actually intended to be charged, after which the price is increased.

Obligated To Reciprocate

A social norm suggesting that individuals should return a favor or service, contributing to the establishment of reciprocal social exchanges.