Trapp Corporation Uses the Weighted-Average Method in Its Process Costing

question 37

Multiple Choice

Trapp Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in its Painting Department consisted of 3,000 units that were 70% complete with respect to materials and 60% complete with respect to conversion costs. The cost of the beginning work in process inventory in the department was recorded as $10,000. During the period, 9,000 units were completed and transferred on to the next department. The costs per equivalent unit for the period were $2.00 for material and $3.00 for conversion costs. The cost of units transferred out during the month was:

• A)$39,600
• B)$45,000
• C)$45,400
• D)$35,400

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Definitions:

Supply Chain

A network comprising of entities, individuals, processes, data, and assets that facilitate the transit of a good or service from its origin to the end user.

Whole-Lot Quantities

The complete amount of goods considered as a single unit for manufacturing, ordering, or selling purposes.

Quick Response Systems

Technology-driven systems designed to improve the efficiency of information flow and material handling, thereby speeding up transactions and responsiveness in the supply chain.

Marketing Channel

A set of practices or activities necessary to transfer the ownership of goods from the point of production to the point of consumption, including the distribution and selling processes.