The Following Information Is Available for Department C for the Month

question 66

Multiple Choice

The following information is available for Department C for the month of June: $\begin{array}{lr}&\text { Units }& \text { Cost }\\\text { Work in process, June } 1 \text { (70\% complete) } & 10,000\\\text { Direct materials } && \$ 36,000 \\\text { Direct labor } && 18,000 \\\text { Manufacturing overhead } && 24.000\\ \text {Total work in process, June 1 }&&\$78,000\\ \text {Started in production during June }&40,000\\\text { Costs added: } & \\\text { Direct materials } && \$ 108,000 \\\text { Direct labor } && 48,000 \\\text { Manufacturing overhead } && 60,600\\\text { Total costs added during June }&&\$216,600\\\text { Work in process, June } 30 \text { (80\% complete }) &4,000\end{array}$
Materials are added at the beginning of the process. Round unit costs to two decimal places.
The cost of goods transferred out using the weighted average method is

• A)$273,600.
• B)$241,500.
• C)$273,240.
• D)none of the above.

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Definitions:

Consumer Surplus

The distinction between the price consumers are inclined to pay for a product or service and what they ultimately pay.

Surplus II

The condition where the quantity supplied of a good exceeds the quantity demanded, causing downward pressure on the market price.

Equilibrium Price

The cost at which the amount of products available for sale matches the volume of products consumers want to buy.

Equilibrium Quantity

The quantity at which the supply and demand for a good or service are equal at a certain price level, leading to market equilibrium.