The Taylor Company Uses a Process Costing System -
Assume That You Have Calculated a Direct Materials

question 12

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: $\begin{array}{|l|l|l|}\hline & \text { Units } & \\\hline \text { Beginning work in process } & 26,000 & \text { (70 percent complete for conversion costs) } \\\hline \text { Units stated } & 180,000 & \\\hline \text { Units transferred out } & 191,000 & \\\hline \text { Ending work in process } & 15,000 & \text { (60 percent complete for conversion costs) } \\\hline & &\end{array}$
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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:

Débrides

The process of removing dead, damaged, or infected tissue to improve the healing potential of the remaining healthy tissue.

Informed Consent

A process by which a patient voluntarily agrees to a proposed medical treatment after being informed of the risks, benefits, and alternatives.

Discharged

The process of formally releasing a patient from a hospital or health care facility after treatment, or the release of substances from the body.

Healthcare Decisions

Choices made by a person or their designated representative about aspects of their health care, from treatments to end-of-life care.