Cosby Uses a Weighted-Average Process-Costing System

question 80

Multiple Choice

Cosby uses a weighted-average process-costing system. All materials are added at the beginning of the process; conversion costs are incurred evenly throughout production. The company finished 40,000 units during the period and had 15,000 units in progress at year-end, the latter at the 40% stage of completion. Total material costs amounted to $220,000; conversion costs were $414,000.
The cost of goods completed is:

• A) $312,000.
• B) $414,000.
• C) $520,000.
• D) $634,000.
• E) None of the answers is correct.

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Definitions:

Loaded Die

A die that has been tampered with to favor one or more outcomes over others, not allowing for fair random results.

Hypothesis

An educated guess or proposed explanation made on the basis of limited evidence as a starting point for further investigation.

Sick Leave Percentage

The ratio or percentage of an employee's work time missed due to illness.

P-value

The probability of observing a test statistic as extreme as, or more extreme than, the value observed under the assumption that the null hypothesis is true.