Sarver Corporation Uses the Weighted-Average Method in Its Process Costing

question 91

Multiple Choice

Sarver Corporation uses the weighted-average method in its process costing system.The Fitting Department is the second department in its production process.The data below summarize the department's operations in March. The Fitting Department's cost per equivalent unit for conversion cost for March was $8.24. How much conversion cost was assigned to the units transferred out of the Fitting Department during March?

• A)$482,287.20
• B)$502,640.00
• C)$523,240.00
• D)$561,144.00

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Definitions:

Mortgage Notes Payable

A form of long-term debt where the borrower agrees to pay back a loan used to purchase real estate, along with interest, over a specified period.

Financing Activity

Financial transactions and events that affect the equity and debt structure of a company, including borrowing, repaying debt, and issuing or buying back shares.

Operating Activity

Transactions and events related to the core business operations of a company, including revenue generation and expenses related to producing goods and services.

Gain

A financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.