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

question 18

Multiple Choice

Walborn Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a particular department consisted of 11,000 units, 100% complete with respect to materials cost and 30% complete with respect to conversion costs. The total cost in the beginning work in process inventory was $22,400. A total of 45,000 units were transferred out of the department during the month. The costs per equivalent unit were computed to be $1.20 for materials and $3.40 for conversion costs. The total cost of the units completed and transferred out of the department was:

• A)$207,000
• B)$184,600
• C)$204,980
• D)$182,580

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Definitions:

Consumer Surplus

The discrepancy between what consumers are ready and able to spend on a good or service and the amount they end up paying.

Producer Surplus

The difference between the amount that producers are willing to accept for a good or service and the actual amount they receive.

Costly Negotiations

Negotiation processes that involve significant expenses, time, or resources, which can affect the willingness of parties to reach an agreement.

High-value

Refers to goods or services that have a substantial value in monetary terms or significant importance to a particular process or situation.