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

question 24

Multiple Choice

Acklac Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 700 units. The costs and percentage completion of these units in beginning inventory were: A total of 9,200 units were started and 8,300 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: The ending inventory was 75% complete with respect to materials and 15% complete with respect to conversion costs. Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.
The cost per equivalent unit for materials for the month in the first processing department is closest to:

• A)$22.40
• B)$20.28
• C)$21.14
• D)$21.49

Prepare and interpret a balance sheet segment related to receivables.

Identify and explain differences between IFRS and GAAP in accounting for cash and receivables.

Record transactions under various methods (gross price, net price, allowance).

Understand and explain the concepts of gross price and net price methods of recording credit sales, including their impact on financial statements.

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Definitions:

Insanity Defense

A legal defense that a defendant was unable to distinguish right from wrong or was incapable of forming the intent to commit a crime due to a severe mental illness.

M'Naghten Rule

A legal principle that defines the insanity defense by assessing whether a defendant can understand the difference between right and wrong at the time of the crime.

Insanity Defense

A legal defense strategy where the defendant claims they were unable to understand the nature or wrongness of their actions due to mental illness at the time of the crime.

M'Naghten Rule

A legal principle defining the insanity defense by assessing if a defendant was incapable of understanding the wrongness of their action due to a mental disorder at the time of the crime.