Cranford Company Completed and Transferred Out 2,300 Units in May

question 108

Multiple Choice

Cranford Company completed and transferred out 2,300 units in May 2020. There were 200 units in the Work-in-Process Inventory on May 31, 2020, 30% complete as to conversion costs and 100% complete as to materials. The month's charges for conversion costs and material costs were $9,440 and $6,250, respectively. There was no beginning inventory on May 1, 2020. What is the cost of the work transferred-out during May, assuming that Cranford uses weighted-average process costing?

• A) $8,510.
• B) $14,950.
• C) $15,690.
• D) $16,250.

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Definitions:

Nullification

The doctrine suggesting that states have the right to invalidate any federal law which they view as unconstitutional.

Exposition and Protest

A document or statement that clearly explains a position or viewpoint on a contentious issue, often used to articulate objection or dissent.

Virginia and Kentucky Resolutions

Statements drafted in 1798 and 1799, arguing that the U.S. states have the right to nullify federal laws considered unconstitutional, in response to the Alien and Sedition Acts.

Indian Removal

The 19th-century policy initiated by the U.S. government aimed at relocating Native American tribes from their ancestral homelands in the Southeast to territories west of the Mississippi River.