Cheese Heads Cheddar Utilizes a Process Costing System

question 96

Multiple Choice

Cheese Heads Cheddar utilizes a process costing system.The beginning Work in Process Inventory in the Cutting Department consisted of 16,000 units which were 100% complete with respect to materials and 20% complete with respect to conversion costs.The ending Work in Process Inventory consisted of 12,000 units which were 100% complete with respect to materials and 50% complete with respect to conversion costs.The total cost in beginning inventory was $65,000 with an additional $270,400 added during the period.During the month, 62,000 units were transferred out to the next department.The equivalent cost per unit was $1.50 for materials and $3.30 for conversion costs.How much is the total cost of the inventory transferred out during the period?

• A)$389,000
• B)$224,400
• C)$297,600
• D)$93,000

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Definitions:

Color Constancy

The ability of the human visual system to perceive colors of objects, invariant to the color of the light source.

Brain Region

Specific areas within the brain that are responsible for different functions, such as the hippocampus for memory or the frontal lobes for decision making.

Off-Surround Cell

A type of neuron in the visual system that is inhibited when light falls on its surrounding area, enhancing contrast detection.