Red Manufacturing Uses a Process Cost System to Manufacture Sensors

question 104

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 cost of the units in the ending work-in-process inventory at October 31 when using the weighted average method?

• A)$153,960
• B)$154,800
• C)$155,328
• D)$156,960

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Definitions:

Ashurnasirpal II

An Assyrian king known for his expansive building projects, including the palace at Nimrud and many reliefs depicting his conquests and hunting exploits.

Kalhu

An ancient city that served as the capital of the Assyrian Empire under the reign of Ashurnasirpal II; also known as Nimrud in modern times.

Elamite

Pertaining to Elam, an ancient civilization located in what is now southwest Iran, known for its contributions to art, architecture, and writing systems.

Neolithic Period

The final stage of cultural evolution or technological development among prehistoric humans, characterized by the development of agriculture and the making of polished stone tools.