Macey Ltd Uses a Weighted-Average Process Costing System

question 42

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. Assume actual spoilage was 500 units and ending work in process was 9,500 units. The equivalent units of conversion costs would be

• A) 17,130
• B) 17,150
• C) 17,050
• D) 17,200

---

Definitions:

Information Technology

The use of computers, networking, and infrastructures to create, process, store, secure, and exchange all forms of electronic data.

Mass Production Systems

A method of manufacturing that uses machinery and assembly lines to produce large quantities of identical goods at a low cost.

LEED Certification

A globally recognized symbol of sustainability achievement and leadership, focusing on efficient and environmentally friendly building design.

CO2 Emissions

The release of carbon dioxide into the atmosphere, primarily from burning fossil fuels, contributing to global climate change.