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

question 111

Multiple Choice

Baker Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 8,000 units in its beginning work in process inventory that were 90% complete with respect to conversion costs. An additional 95,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 11,000 units in the ending work in process inventory of the Assembly Department that were 90% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month?

• A)94,700
• B)101,900
• C)98,000
• D)92,000

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Definitions:

Price-Setting Process

The series of steps businesses undertake to determine the price at which they will offer their products or services to the market, considering costs, demand, competition, and objectives.

Cost Estimation

The process of predicting the amount of resources, especially financial, required to complete a project or produce a product.

Pricing Constraints

Factors that limit the range of prices a firm may set.

Corporate Goals

The strategic objectives that a company aims to achieve, which guide its business operations and decision-making processes.