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

question 14

Multiple Choice

Fauste Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 10,000 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. An additional 55,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. During the month 52,000 units were completed in the Assembly Department and transferred to the next processing department. There were 13,000 units in the ending work in process inventory of the Assembly Department that were 80% complete with respect to conversion costs.
What were the equivalent units for conversion costs in the Assembly Department for the month?

• A) 58,000
• B) 55,400
• C) 62,400
• D) 52,000

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Definitions:

Labor Unions

Organizations formed by workers from related fields that work for the common interest of its members in issues related to wages, benefits, working conditions, and more.

Large Employers

Refers to businesses employing a high number of workers, typically those with 500 or more employees, but definitions can vary by country and context.

Labor Unions

Organizations formed by workers to protect their rights and interests through collective bargaining with employers.

Firm's Total Profit

The total income of a firm after subtracting all costs necessary to generate its revenue.