Cherrington Company Uses a Process Costing System

question 2

Multiple Choice

Cherrington Company uses a process costing system. For May, the month just completed, the beginning work in process inventory consisted of 50,000 units which were 60% complete with respect to conversion costs. The ending inventory for the month was 20% complete with respect to conversion costs. A summary of cost data for the month follows:



-Using the weighted-average method, the total cost of the units in ending work in process inventory is closest to:

• A) $156,960
• B) $86,400
• C) $153,960
• D) $154,800

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Definitions:

Good Economy

A state of economic prosperity characterized by high employment, steady growth, and controlled inflation.

Poor Economy

A condition where there is a decline in financial and economic activities, leading to higher unemployment rates and lower consumer spending.

Expected Returns

The probable gains or losses on an investment over a specific period based on historical performance or analyst forecasts.

Economy

The system of production, distribution, and consumption of goods and services within a particular geographic region.