Bartlow Company Uses the Weighted Average Method in Its Costing

question 31

Multiple Choice

Bartlow Company uses the weighted average method in its costing system.There were 6,000 units in beginning work-in-process that were 60% complete.During the month, 39,600 units were started and 37,680 units were completed and transferred.The ending work in process consists of:

• A) 5,043 units.
• B) 7,000 units.
• C) 3,600 units.
• D) 7,920 units.

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Definitions:

Net Operating Income

The income a company makes from its main business activities before subtracting any costs for interest and taxes.

Fixed Manufacturing Overhead

The portion of manufacturing overhead costs that remains constant irrespective of the level of production, such as salaries of supervisors and rent for the factory building.

Variable Costing

A costing method that includes only variable production costs (costs that vary with output) in the cost of goods sold and excludes fixed overhead costs.

Variable Costing

A costing method that includes only variable production costs (materials, labor, and variable manufacturing overhead) in product costs, excluding fixed overhead.