Habitat Company Uses the Weighted Average Method in Its Costing

question 126

Multiple Choice

Habitat Company uses the weighted average method in its costing system.In the assembly department,the equivalent units for conversion costs amounted to 35,000 for the month of May.In beginning work in process,5,000 units were 50% complete.During the month,33,000 units were started and 31,400 were completed and transferred.How many units were in the ending work in process?

• A)3,600 units
• B)5,000 units
• C)6,600 units
• D)7,000 units

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Definitions:

Profit Maximizing

The process or strategy of adjusting production and pricing to achieve the highest possible profit.

Cournot Equilibrium

Equilibrium in the Cournot model, in which each firm correctly assumes how much its competitor will produce and sets its own production level accordingly.

Competitive Equilibrium

A market state where supply equals demand, and no economic forces are compelling either price or quantity to change.

Oligopolistic

Referring to a market structure characterized by a small number of firms that have significant control over prices and market share.