Department a Had No Work-In-Process at the Beginning of the Period,1,000

question 71

Multiple Choice

Department A had no Work-in-Process at the beginning of the period,1,000 units were completed during the period,200 units were 50% completed at the end of the period,and the following manufacturing costs were debited to the departmental Work-in-Process account during the period Assuming that all direct materials are added at the beginning of production and Department A uses weighted-average process costing,what is the total cost of the departmental Work-in-Process Inventory at the end of the period?

• A)$3,650.
• B)$2,900.
• C)$2,000.
• D)$1,825.

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Definitions:

Economies of Scale

The cost advantage achieved when production becomes efficient, as the scale of production increases, leading to a reduction in the average cost to make each unit.

Diseconomies of Scale

A situation where, as a firm becomes larger, its costs per unit increase due to inefficiencies that arise from its growth.

Constant Costs

The costs that remain unchanged as the level of output or production increases or decreases.