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:

Figure Ambiguity

The quality of an image or representation that leads to multiple interpretations due to its unclear form.

Interposition

A visual cue in depth perception where one object partly covers another, indicating that the former is closer to the viewer than the latter.

Relative Size

An aspect of visual perception that allows one to judge the size of an object in relation to other objects within the same field of view.

Linear Perspective

A system of creating an illusion of depth on a flat surface by converging lines in a painting or drawing to a single vanishing point on the composition's horizon line.