Golden Ring Company Produces Two Types of Product: Large and Larger

question 120

Multiple Choice

Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of the products are shown below, along with some additional cost information: $\begin{array} { l }&\text { Large } & \text { Larger } \\&\text { Work Order } 10 & \text { Work Order } 11\\\text {Direct materials (actual costs) }&\$45,000&\$75,000\\\text { Applied conversion costs:}\\\text {Mixing }&?&?\\\text { Cooking } & \$ 12,000 & \$ 12,000 \\\text { Bottling } & \$ 10,000 & \$ 15,000 \\\\\text { Batch size (bottles) } & 5,000 & 5,000\end{array}$
In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It takes three minutes to mix the ingredients needed for each bottle.
Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking and Bottling departments.
What are Golden Ring Company's conversion costs applied to Large (Work Order 10) from the Mixing Department for each batch?

• A)$35,000
• B)$35
• C)$175,000
• D)$17,500

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Definitions:

Short-Term Psychodynamic Therapy

A therapeutic approach that seeks to uncover unconscious patterns and meanings in current psychological processes over a brief period.

Relational Psychoanalytic Therapy

A form of psychodynamic therapy that considers therapists to be active participants in the formation of patients’ feelings and reactions and therefore calls for therapists to disclose their own experiences and feelings in discussions with patients.

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