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

question 38

Multiple Choice

Carmon 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 7,900 units were started and 6,900 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 70% complete with respect to materials and 35% 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 total cost transferred from the first processing department to the next processing department during the month is closest to:

• A)$334,200
• B)$367,616
• C)$294,947
• D)$308,600

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Definitions:

Sanitary Condition

The state of being clean and free from infection or disease, typically applied to living environments or food production.

Abandonment

The act of relinquishing property, rights, or responsibilities without the intention of reclaiming them at a later date.

Leased Premises

Property rented under a lease agreement, where the lessee has the right to occupy and use the property for a specified term.

Rent Default

The failure to pay rent as stipulated in a lease agreement, potentially leading to eviction or legal action.