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

question 100

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 is Golden Ring Company's amount transferred from the Bottling Department to Finished Goods for Work Order 10?

• A)$45,000
• B)$39,500
• C)$84,500
• D)$67,000

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Definitions:

Calculator

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Particle Size

A characteristic measurement of solid or liquid particles that represents their size dimension, often important in the analysis of a wide range of substances.

Stream Flowing

The movement of water in a natural course, such as a river or creek, typically from a source towards an outlet, like a lake or ocean.

Water Moving

This term is too vague without context but may refer to the physical displacement or flow of water in natural or artificial systems.