Nando Company Uses the Weighted-Average Method in Its Process Costing

question 50

Multiple Choice

Nando Company uses the weighted-average method in its process costing system. Department J is the second of three sequential processes at the company. During October , Department J collected the following data:
All materials are added at the beginning of the process.

-The total cost assigned to units transferred out during October was:

• A)$264,600
• B)$316,000
• C)$342,000
• D)$358,400

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Definitions:

Uncontrollable Costs

Expenses that cannot be controlled or influenced by management in the short term.

Direct Expenses

Costs that can be directly tied to the production or sale of specific goods or services, such as raw materials and labor.

Indirect Expenses

Costs that are not directly traceable to a specific cost object, such as manufacturing overhead, and must be allocated accordingly.

Controllable Costs

Expenses that a manager or a business can influence or regulate in the short term, such as supplies, utilities, and wages.