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:

Job Classification

The categorization of positions within an organization based on duties, responsibilities, and the level of authority.

Better Benefits

Enhanced advantages or perks provided to employees, beyond statutory requirements, aimed at improving their work-life balance and job satisfaction.

Equity Capital

Equity capital is the amount of money that is invested in a company by its owners, in exchange for ownership interest or shares.

Crowdfunding

The method of financing a project or business through the collection of minor contributions from a wide base of individuals, mainly through online platforms.