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:

Counteroffer

An offer made in response to another offer, differing in terms by which the original offer was changed or rejected.

Accept the Offer

The act of agreeing to the terms and conditions of a proposal, such as a contract, thereby creating a binding agreement between the parties involved.

Revoked

To officially cancel or annul an authorization, license, or legal agreement.

Unequivocal

Leaving no doubt; unambiguous or clear in expression or meaning.