A Company Uses a Process Costing System

question 203

Multiple Choice

A company uses a process costing system. Its Weaving Department completed and transferred out 120,000 units during the current period. The ending inventory in the Weaving Department consists of 40,000 units (20% complete with respect to direct materials and 60% complete with respect to conversion costs) . Determine the equivalent units of production for the Weaving Department for direct materials and conversion costs assuming the weighted average method.

• A) 128,000 materials; 120,000 conversion.
• B) 120,000 materials; 160,000 conversion.
• C) 128,000 materials; 144,000 conversion.
• D) 128,000 materials; 184,000 conversion.
• E) 120,000 materials; 120,000 conversion.

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Definitions:

Linea Alba

A fibrous structure that runs down the midline of the abdomen, providing muscle attachment.

Serratus Anterior

A muscle of the chest that assists in the upward movement of the arm and in the breathing process.

Rectus Abdominis

A long muscle running from the pubis to the rib cage, involved in flexing the lumbar spine and stabilizing the pelvis and lower back.

External Oblique

A muscle located on the lateral and anterior part of the abdomen, playing a crucial role in the movement and support of the trunk.