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

question 46

Multiple Choice

Bosril Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning inventory were: A total of 5,600 units were started and 4,900 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 85% complete with respect to materials and 45% 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) $24,812
• B) $17,294
• C) $32,666
• D) $38,431

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Definitions:

Hourly Wage

A rate of pay based on the number of hours worked, distinct from salary pay which is fixed regardless of hours worked.

Excess Inventory

Inventory that exceeds the optimal level, often leading to additional storage costs and potential obsolescence.

Aggregate Plan

A strategic framework used in production and operations management to determine the necessary production levels, inventory, and workforce to meet anticipated demand.

Capacity

The maximum amount that something can contain or accomplish, such as production capability within a given period.