Answer the Following Questions Using the Information Below

question 106

Multiple Choice

Answer the following questions using the information below:
The Townsend Tractor Company manufactures small garden tractors on a highly automated assembly line.Its' costing system uses two cost categories, direct materials and conversion costs.Each tractor must pass through the Assembly Department and the Testing Department.Direct materials are added at the beginning of the production process.Conversion costs are allocated evenly throughout production.Townsend Tractor uses weighted-average costing.
-What amount of conversion costs are assigned to the Townsend Company ending Work-in-Process account for April?

• A)$143,750.00
• B)$145,312.50
• C)$180,000.00
• D)$250,000.00
• E)$116,250.00

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Definitions:

Stock

Equity units in a corporation, signifying a stake in the firm's profits and assets.

Articles of Dissolution

Documents filed with a governmental body to formally conclude the legal existence of a corporation or partnership.

Secretary of State

A senior official in the government responsible for managing and overseeing governmental departments or representing the country in foreign affairs.

Voluntary Dissolution

The process by which a corporation legally terminates its existence by the decision of its shareholders or board, rather than being forced to do so by a court or creditors.