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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:

Understand the classification of cash receipts and payments in the direct method of preparing a statement of cash flows.

Determine the cash effects of transactions and events related to investing and financing activities.

Calculate the ending cash balance given the beginning balance and cash flows from operating, investing, and financing activities.

Analyze changes in current assets and current liabilities to adjust net income for non-cash transactions and changes in operating capital.

Definitions:

Brand Names

Brand names are distinctive names given to products or services by companies to identify and differentiate them from competitors.

Optimal Efficiency

A condition where resources are allocated in the most efficient manner, maximizing output without wasting resources.

Operating

Pertains to the day-to-day running or functioning of businesses, systems, or machines.

Output

The quantity of goods or services produced in a given period by a firm, industry, or country.