The Following Information Relates to the Assembly Department of Jataca

question 78

Multiple Choice

The following information relates to the Assembly Department of Jataca Corporation for the month of November.Jataca uses a weighted-average process costing system.All materials at Jataca are added at the beginning of the production process. On November 1,the work in process inventory account contained $6,400 of material cost and $4,400 of conversion cost.Cost per equivalent unit for November was $1.50 for materials and $2.80 for conversion costs. What total amount of cost should be assigned to the units in work in process on November 30?

• A)$17,800
• B)$38,700
• C)$40,200
• D)$43,000

---

Definitions:

Fixed Costs

Costs that do not vary in proportion to the level of goods or services produced by a business, such as rent, salaries, and insurance premiums.

Operating Leverage

Operating Leverage is a measure of how revenue growth translates into growth in operating income, determined by the proportion of fixed versus variable costs a company has.

Variable Cost

Operational expenses of a business that alter in accordance with the level of activity.

Tax Rate

A tax rate is the percentage at which an individual or corporation is taxed on their income or profits.