Miramar Ltd Uses a Weighted-Average Process Costing System Which Recognises

question 37

Multiple Choice

Miramar Ltd uses a weighted-average process costing system which recognises normal spoilage as 5% of good output. During the current period, 14,000 units were started and 10,000 units completed. Materials are added at the beginning of the process, conversion costs occur uniformly, and the inspection point is at the 70% point. Beginning work in process was 6,000 units, 40% complete, and ending work in process 9,000 units, 80% complete. The cost per equivalent unit for material was $1.00 and for conversion costs $3.00. The cost of goods completed was

• A) $41,550
• B) $40,000
• C) $40,816
• D) $41,053

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Definitions:

Capital

Refers to wealth in the form of money or other assets owned by a person or organization or available for a purpose such as starting a company or investing.

Direct Investment

The acquisition of a controlling interest in a foreign business by making investments such as purchasing the company's stock directly.

Capital Commitments

The funds that a company plans to spend on long-term assets or projects over a period of time.

Ownership

The state or fact of possessing something, which can include both tangible assets (like property) and intangible assets (like intellectual property).