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

question 100

Multiple Choice

Guo Corporation uses the weighted-average method in its process costing system.This month,the beginning inventory in the first processing department consisted of 500 units.The costs and percentage completion of these units in beginning inventory were: A total of 9,700 units were started and 9,100 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 85% complete with respect to materials and 75% 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 three decimal places.
The total cost transferred from the first processing department to the next processing department during the month is closest to:

• A)$623,600
• B)$638,122
• C)$614,200
• D)$569,305

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Definitions:

Break-Even Time

The period required for an investment, project, or business to generate enough income to cover its initial cost, reaching a point where there are no net losses or gains.

Highest Rank

The top position or level in an organizational hierarchy or system.

Payback Period

The amount of time it takes for an investment to generate an amount of income or cash equal to the cost of the investment.

Unprofitable Investment

An investment that generates a financial loss or does not achieve the expected financial return.