Use the Following Performance Report for a Profit Center of the Wet

question 87

Multiple Choice

Use the following performance report for a profit center of the Wet Cat Food Company for the month ended December 31 to answer the question below. What were the actual sales?

• A) $180
• B) $200
• C) $220
• D) $240

---

Definitions:

Processing Department

A section of a manufacturing facility where a specific type of processing or assembly operation is performed on products.

Ending Inventory

Ending Inventory refers to the total value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting the cost of goods sold.

Conversion Costs

The sum of labor and overhead costs incurred to convert raw materials into finished goods.

Weighted-Average Method

A cost accounting method that calculates the cost of units produced during a period based on the weighted average of the costs of units available for sale or use.