Bradley Company Manufactures Generic Notebooks $\begin{array} { l } \text {Direct materials added in June }&\$285,000\\ \text { Conversion costs added in June}&\$210,000\\\end{array}$

question 47

Multiple Choice

Bradley Company manufactures generic notebooks.Material is introduced at the beginning of the process in the Printing Department.Conversion costs are applied uniformly throughout the process.The weighted-average method of process costing is used.Data for the Printing Department for the month of June follow:
Work-In-Process Inventory,June 1:
$\begin{array} { l } \text { Units }&15,000\\ \text {Direct materials ( \( 100 \% \) complete) }&\$34,000\\ \text { Conversion costs ( \( 30 \% \) complete) }&\$14,000\\\end{array}$

$\begin{array} { l } \text {Units started in June }&65,000\\ \text { Units completed in June}&62,000\\ \text {Work-In-Process Inventory, June } 30&18,000\\\end{array}$

$\begin{array} { l } \text {Direct materials added in June }&\$285,000\\ \text { Conversion costs added in June}&\$210,000\\\end{array}$

With regard to the Work-In-Process Inventory on June 30,materials are 100 percent complete and conversion costs are 50 percent complete.What are the equivalent units for conversion costs for June?

• A) 62,000
• B) 68,300
• C) 71,000
• D) 80,000

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Definitions:

Bank Indebtedness

A financial obligation or debt owed to a bank by an individual or corporation, usually in the form of loans or lines of credit.

Contingent Liability

A potential financial obligation that may occur depending on the outcome of a future event.

Interest Expense

The cost incurred by an entity for borrowed funds, reflecting the interest payments on debt over a reporting period.

Note Payable

A written agreement where one party promises to pay another party a definite sum of money either on demand or at a specified future date.