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

question 41

Multiple Choice

Acklac Corporation uses the weighted-average method in its process costing system.This month,the beginning inventory in the first processing department consisted of 700 units.The costs and percentage completion of these units in beginning inventory were: A total of 9,200 units were started and 8,300 units were transferred to the second processing department during the month.The following costs were incurred in the first processing department during the month: The ending inventory was 75% complete with respect to materials and 15% complete with respect to conversion costs. Note: Your answers may differ from those offered below due to rounding error.In all cases,select the answer that is the closest to the answer you computed.To reduce rounding error,carry out all computations to at least three decimal places.
The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to:

• A)$33,273
• B)$11,769
• C)$78,462
• D)$58,847

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Definitions:

Price Decrease

A reduction in the cost of goods or services, typically resulting from factors such as increased supply, decreased demand, or external market conditions.

Labor Supply Curve

The Labor Supply Curve is a graphical representation showing the relationship between the quantities of labor that workers are willing and able to provide at different wage levels, typically sloping upwards from left to right.

Backward Bending

A labor supply curve that bends backward at higher wage rates, indicating that individuals may choose to work fewer hours as their income increases.

Marginal Utility

The additional satisfaction or utility that a consumer derives from consuming an additional unit of a good or service.