Reference no: EM1311810
Ending work in process inventory.
The Morgan Company uses the weighted average method in its process costing system. Company had 54,000 equivalent units with respect to conversion costs in March. There were 7,500 units in the departments beginning work in process inventory, two thirds complete with respect to conversion costs. During March, 52,500 units were started and 50,000 were completed and transferred out of the department. The ending work in process inventory in the department:
a) 5,000 units
b) 2500 units
c) 65% complete with respect to conversion costs
d) 40% complete with respect to conversion costs.
Vanfleet Corp. uses an activity based costing system with three activity coasts pools. The company provided the following data concerning costs:
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Wages and salaries
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$420,000
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Depreciation
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100,000
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Occupancy
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200,000
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Total
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720,000
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The distribuion of resource consumption across the three activity pools is given below:
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Activity costs pools
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Fabricating
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processing
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other
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Wages and salaries
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30%
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45%
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25%
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Depreciation
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5%
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45%
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50%
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Occupancy
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15%
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55%
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30%
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How much cost, in total, would be allocated in the first stage allocation in the fabricating activity cost pool?
a) 120,000
b) 216,000
c) 161,000
d) 108,000
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