Asked by Tyesha Valles on Jun 03, 2024
Verified
Raphael's Refining uses a weighted average process costing system. For a particular period, its opening inventory consisted of 100 items (60 per cent complete as to conversion costs) whose costs were $1600 made up of material $300 and conversion cost $1300. During the month, 1000 items were started and 950 were completed. Ending inventory of WIP was one-third complete. There was no spoilage. Costs placed in process during the month were materials $1600 and conversion costs $13 700. Materials are added at the halfway point. What is the amount of cost that would be allocated to goods completed in the period?
A) $14 615
B) $16 513
C) $16 900
D) $16 150
Weighted Average Process Costing
A method of cost accounting used in production where costs for materials, labor, and overhead are averaged over the units produced, taking into consideration the degree of completion.
Conversion Costs
Expenses related to converting raw materials into finished goods, including labor and overhead costs.
Opening Inventory
The value or quantity of goods on hand at the beginning of an accounting period.
- Utilize understanding of process costing to determine unit costs using varied costing approaches.
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Learning Objectives
- Utilize understanding of process costing to determine unit costs using varied costing approaches.
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