195. CSO: 1C2b LOS: 1C2b
Oster Manufacturing uses a weighted-average process costing system and has the
following costs and activity during October.
Materials $40,000
Conversion cost 32,500
Total beginning work-in-process inventory $72,500
Materials $ 700,000
Conversion cost 617,500
Total production costs - October $1,317,500
Production completed 60,000 units
Work-in-process, October 31 20,000 units
All materials are introduced at the start of the manufacturing process, and conversion cost
is incurred uniformly throughout production. Conversations with plant personnel reveal
that, on average, month-end in-process inventory is 25% complete. Assuming no
spoilage, how should Oster’s October manufacturing cost be assigned?
Production Completed Work-in-Process
a. $1,042,500 $347,500.
b. $1,095,000 $222,500.
c. $1,155,000 $235,000.
d. $1,283,077 $106,923.
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