Kidd Company Uses a Process Costing System and the Weighted

question 111

Multiple Choice

Kidd Company uses a process costing system and the weighted average method.The company had 800 units of product in its work in process inventory at the beginning of the period.During the period 3,000 additional units of product were started.At the end of the period there were 1,500 units of product in the Work in Process account.The ending work in process inventory was estimated to be 30% complete.The beginning work in process inventory had a balance of $4,000.Product costs totaling $84,000 were added to work in process during the period.The amount of cost in ending work in process inventory is:

• A) $33,600.
• B) $48,000.
• C) $14,400.
• D) $8,400.

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Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (or budgeted) variable overhead based on a standard rate.

Labor Efficiency Variance

measures the difference between the actual labor hours used and the standard labor hours expected for the production achieved, indicating labor efficiency.

Labor Efficiency Variance

A measure of the difference between the actual number of labor hours used and the standard number of labor hours expected to produce a certain level of output.

Materials Quantity Variance

The financial difference between the actual quantity of materials used in production and the standard expected quantity.