Macey Ltd Uses a Weighted-Average Process Costing System

question 12

Multiple Choice

Macey Ltd uses a weighted-average process costing system. Beginning inventory consists of 6,000 units, 40% complete. Units started are 14,000, completed are 10,000, and ending inventories are 9,000 units, 70% complete. Normal spoilage is 5% of the units inspected. Direct material is added at the 75% point and spoilage inspection occurs at the 80% point. The cost per equivalent unit for materials was $1.00 and $3.00 for conversion costs. The cost of the units completed was

• A) $40,000
• B) $42,200
• C) $41,760
• D) $41,870

---

Definitions:

Central Tendency

A statistical measure that identifies the center of a data set, often using the mean, median, or mode.

Variation

Differences or diversities in characteristics among individuals of a population, species, or between groups.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values.

Mean Age

An arithmetic average age of all the individuals in a given group or sample.