A Company Uses the Weighted Average Method for Inventory Costing

question 59

Multiple Choice

A company uses the weighted average method for inventory costing. During a period, a production department had 20,000 units in beginning goods in process inventory which were 40% complete; the department completed and transferred 165,000 units. At the end of the period, 22,000 units were in the ending goods in process inventory and are 75% complete. Compute the number of equivalent units produced by the department.

• A) 181,500.
• B) 165,000.
• C) 173,500.
• D) 145,000.
• E) 187,000.

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Definitions:

Repetitive Processes

Processes that are characterized by the repeated production or execution of the same operation or sequence of operations.

Job Shop Layout

An arrangement of resources in a manufacturing operation where similar machines or functions are grouped together to manage varied products or jobs in small batches.

Classic Assembly Lines

Production methods where a product is assembled in a sequential manner by passing through various stations, each adding specific components or value.