Use the Information Below to Answer the Following Questions

question 157

Multiple Choice

Use the information below to answer the following questions:
Goody Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. The company uses the weighted-average method for process costing. Data for the finishing department follows:

-What are the equivalent units for direct materials at Goody Company?

• A) 57,000
• B) 60,000
• C) 51,000
• D) 54,000

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Definitions:

Cost of Goods Sold

The specific costs incurred in the making of goods that a company sells, which include materials and labor.

Schedule

A structured plan that outlines the times at which certain tasks, events, or activities are intended to occur.

Underapplied Manufacturing Overhead

The condition in which the manufacturing overhead costs assigned are lower than the real overhead costs that have been incurred.

Overapplied Manufacturing Overhead

A situation where the allocated manufacturing overhead costs are more than the actual overhead costs incurred.