Schaefer Company Has the Following Information Available for the Month

question 98

Multiple Choice

Schaefer Company has the following information available for the month of March:
$\begin{array}{lccll} &&\text { Units }&\text { Transterred- }&\text { Direct }\\&\text { Conversion }& \text { in Costs } & \text { Materials } & \text { Costs } \\\text { Work-in-process inventory, March } 1&240 & \$ 33,600 & 0 & \$ 18,000 \\*\text { Percent complete }&& 100 \% & 0 \% & 62.5 \%\end{array}$
$\begin{array}{ll}\text { Transferred-in during March } & 400 \\\text { Completed in March } & 440 \\\text { Work-in-process inventory, March 31 } & 200\\\text { *Percent complete }&&100\%&0\%&80\%\end{array}$
$\begin{array} { l } \text {Costs added in March }&\$52,000&\$13,200&\$48,600 \\\end{array}$

The company uses the weighted-average method for process costing.What are the equivalent units for March for transferred-in costs?

• A) 400
• B) 440
• C) 600
• D) 640

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Definitions:

Direct Labor-Hour

A measure of the labor time spent directly on the production of goods or services, often used as a basis for allocating labor costs to products.

Manufacturing Overhead

All manufacturing costs that are not directly associated with the production of a product, including costs for indirect materials, indirect labor, and other indirect expenses.

Casting Department

The Casting Department in a manufacturing setting is where raw materials are poured into molds to form parts or products through the casting process.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual products based on a certain activity.