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

question 18

Multiple Choice

Fulton Corporation uses the weighted-average method in its process costing system.This month,the beginning inventory in the first processing department consisted of 800 units.The costs and percentage completion of these units in beginning inventory were: A total of 9,900 units were started and 8,900 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 70% complete with respect to materials and 60% 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 total cost transferred from the first processing department to the next processing department during the month is closest to:

• A)$323,168
• B)$388,528
• C)$349,400
• D)$364,800

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Definitions:

Production Function

An equation or model that describes the relationship between the inputs used in production and the output of goods or services.

Plastic

A wide range of synthetic or semi-synthetic materials that use polymers as a main ingredient and are malleable, making them suitable for various applications.

Wood

A natural, fibrous material derived from trees, widely used for construction, manufacturing, and fuel.

Production Function

A mathematical model that describes the maximum output of a firm, given the inputs of labor, capital, and technology.