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

question 88

Multiple Choice

Froment Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 200 units. The costs and percentage completion of these units in beginning inventory were: A total of 7,900 units were started and 7,400 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 65% complete with respect to materials and 25% 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 cost of ending work in process inventory in the first processing department according to the company's cost system is closest to:

• A)$28,359
• B)$18,433
• C)$7,090
• D)$11,809

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Definitions:

Transition Zone

An area or region where two or more distinct habitats or ecosystems meet and integrate, often rich in species diversity.

Inland Freshwater Wetland

Wetlands located away from coastal areas, characterized by fresh water and supporting diverse plant and animal life, important for flood control and water purification.

Estuary

A coastal area where fresh water from rivers and streams meets and mixes with salt water from the ocean, creating diverse and productive ecosystems.

Coral Reefs

Underwater ecosystems characterized by reef-building corals, which are colonies of tiny living animals found in marine waters that contain few nutrients.