Forest Company, Which Uses a Weighted-Average Process-Costing System, Had 7,000

question 60

Multiple Choice

Forest Company, which uses a weighted-average process-costing system, had 7,000 units in production at the end of the current period that were 60% complete. Material A is introduced at the beginning of the process; material B is introduced at the end of the process; and conversion cost is introduced evenly throughout manufacturing. Equivalent-unit production costs follow.
Material A: $12.50
Material B: $2.00
Conversion cost: $6.60
The cost of the company's ending work-in-process inventory is:

• A) $88,620.
• B) $115,220.
• C) $123,620.
• D) $147,700.
• E) None of the answers is correct.

Explain the process and implications of business franchising, including the rights and responsibilities of franchisors and franchisees.

Understand the principles of agency and the implications for business management and liability.

Comprehend the tax implications of different business structures, including double taxation concerns.

Identify the key factors in choosing the appropriate business form based on management, liability, and fiscal considerations.