Red Manufacturing Uses a Process Cost System to Manufacture Sensors

question 81

Multiple Choice

Red Manufacturing uses a process cost system to manufacture sensors for the security industry. The following information pertains to operations for the month of October.
The beginning inventory was 60% complete for materials and 20% complete for conversion costs. The ending inventory was 90% complete for materials and 40% complete for conversion costs.
Costs pertaining to the month of October area as follows:
Beginning inventory costs: materials, $54,560; conversion cost, $35,560.
Costs incurred during October: materials used, $468,000; conversion cost, $574,040.

-Refer to the Figure.What would be the total equivalent units of production for direct materials when using the weighted average method?

• A)92,000
• B)101,600
• C)113,600
• D)116,000

---

Definitions:

Continuing Behavior

Persistent actions or activities that an individual keeps doing over a period of time.

Cognitive Dissonance

A psychological phenomenon where an individual experiences discomfort due to conflicting beliefs, attitudes, or behaviors.

Coaction Effects

The impact on performance of the presence of other people engaged in the same task.

Source Confusion

Source Confusion is a memory error where individuals are unable to recall the true source of a memory, leading to misattribution of the information's origin.