Waller Co. uses a weighted-average process-costing system. Material B is added at two
different points in the production of shirms, 40% is added when... Accounting MCQs | Accounting MCQs

Waller Co. uses a weighted-average process-costing system. Material B is added at two
different points in the production of shirms, 40% is added when the units are 20%
completed, and the remaining 60% of Material B is added when the units are 80%
completed. At the end of the quarter, there are 22,000 shirms in process, all of which are
50% completed. With respect to Material B, the ending shirms in process represent how
many equivalent units?

4,4008,80011,00022,000Show Result

Correct - Your answer is correct.

Wrong - Your answer is wrong.

Detailed Answer

Answer (B) is correct.
All 22,000 units in ending work-in-process have had 40% of Material B
added, since they have all passed the 20% completion point and none
have reached the 80% completion point. Equivalent units of production
for Material B are thus 8,800 (22,000 × 40%).