The Gasson Company Uses the Weighted-Average Method in Its Process

question 7

Multiple Choice

The Gasson Company uses the weighted-average method in its process costing system. The company's ending work in process stock consists of 10,000 units, 100% complete with respect to materials and 70% complete with respect to labour and overhead. If the costs per equivalent unit are £4.50 for the materials and £2.00 for labour and overhead, the balance of the ending work in process stock account would be

• A)£44,500.
• B)£50,500.
• C)£59,000.
• D)£65,000.

Understand and identify various costs associated with long-lived assets.

Differentiate between types of long-lived assets including tangible and intangible assets.

Classify expenditures related to assets correctly as capital or revenue expenditures.

Analyze and record expenditures associated with acquiring and improving long-lived assets.

---

Definitions:

Food and Drugs

Pertains to regulations and standards that govern the safety, efficacy, and labeling of food, drugs, and cosmetics to protect public health.

Federal Legislation

Laws enacted by the national government of a country, in the case of the United States, laws passed by Congress and signed by the President.

Cease-and-desist Order

A legal order issued by a government agency or court to a person or entity to stop allegedly illegal activities.

Federal Trade Commission

An independent agency of the United States government, created to prevent unfair business practices and promote consumer protection.