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

question 44

Multiple Choice

Chae 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 8,100 units were started and 7,500 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 80% 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 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)$486,614
• B)$472,000
• C)$459,200
• D)$424,373

Calculate product margins under ABC.

Identify the impact of different cost pools on product costs and margins.

Understand how ABC allocates costs to customer-related activities.

Calculate the overhead cost assigned to products and customers under ABC.

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Definitions:

Retail Life Cycle

The progression of stages a retail business goes through from introduction to growth, maturity, and decline.

Growth And Decline

Refers to the phases of the business cycle or product life cycle where an entity or product experiences expansion in business activity or market share, and contraction or reduction respectively.

Retail Outlets

Physical or online stores where goods are sold directly to consumers.

Automated Stores

Retail outlets that operate automatically without the need for human staff, relying on technology like vending machines and kiosks for customer transactions.