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

question 1

Multiple Choice

Sala Corporation uses the weighted-average method in its process costing system. The Fitting Department is the second department in its production process. The data below summarize the department's operations in March.
The Fitting Department's cost per equivalent unit for conversion cost for March was $2.64.
How much conversion cost was assigned to the units transferred out of the Fitting Department during March?

• A) $118,800.00
• B) $131,472.00
• C) $126,508.80
• D) $143,616.00

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Definitions:

Requirements Contract

A type of contract in which one party agrees to purchase all of its needs for a particular good or service from the other party.

Enforceable

Capable of being imposed or upheld by legal process, indicating that an agreement or law can be compelled to be obeyed or carried out.

Inadequate Consideration

When the value exchanged in a contract is disproportionately small, calling into question the validity of the agreement.

Contract

A legally binding agreement between two or more parties that is enforceable by law, outlining obligations and rights of the parties involved.