The Taylor Company Uses a Process Costing System

question 39

Multiple Choice

The Taylor Company uses a process costing system. Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process. The company uses the average costing method. The following data are available for one of its accounting periods: Assume that you have calculated a direct materials cost per unit of $5 and a conversion cost per unit of $8. Under this assumption, the ending balance for Work in Process Inventory would be

• A) $147,000.
• B) $165,000.
• C) $123,000.
• D) $195,000.

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Definitions:

Working Papers

Documents that accountants, auditors, and other professionals create to evidence the work performed and the conclusions reached during an engagement.

Negligence Cases

Legal actions involving claims that a party's failure to exercise reasonable care resulted in harm to another party.

Evidence Use

The application of information or facts presented in a court to support or refute an argument or claim in a legal case.

Restatement Test

A process or set of guidelines used to reevaluate or reinterpret legal principles or statutory laws, often to clarify or update them.