Sutton Company Uses a Process Costing System

question 226

Essay

Sutton Company uses a process costing system. In May, 80,000 units were finished and transferred to finished goods. Ending Work in Process included 20,000 unfinished units 30% complete. Calculate the equivalent units of production for the year using the weighted average method.

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Definitions:

Individual Capacity

Acting on one’s own behalf, involving personal rights or responsibilities, rather than on behalf of a group or a corporate entity.

Liability

The state of being legally responsible for something, typically a debt or obligation.

Note

A financial instrument recognizing a debt or obligation, typically with the promise to repay the principal along with potential interest.

Revised Article 3

An update to a section of the Uniform Commercial Code that deals with negotiable instruments, including changes to laws governing checks and promissory notes.