A Company Uses the Weighted Average Method for Inventory Costing

question 74

Multiple Choice

A company uses the weighted average method for inventory costing.At the beginning of a period the production department had 20,000 units in beginning Work 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 Work 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:

Units

Units refer to the individual components or elements that can be counted or measured, often used in the context of production, sales, and inventory.

Margin Of Safety

The difference between actual sales and break-even sales, indicating how much sales can fall before a business incurs a loss.

Break-Even Sales

The amount of revenue required to cover both the fixed and variable costs of production.

Actual Sales

The exact amount of sales revenue that a company has generated over a specific period, as opposed to projected or forecasted sales.