Jeffery Ltd Uses a Process Costing System

question 56

Multiple Choice

Jeffery Ltd uses a process costing system.Its Spackling Department had no beginning Work in Process inventory.The department added direct materials of $200,000 and conversion costs of $321,300 during the period.Materials are added at the beginning of the process and conversion costs are added evenly throughout the process.During the period 75,000 units were completed, and at the end of the period, 5,000 units remained which were 30% complete.How much is transferred to the Finished Goods inventory account during the period?

• A)$521,300
• B)$488,719
• C)$502,500
• D)$556,053

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Definitions:

Assembly Line

A manufacturing process in which parts are added to a product in a sequential manner to create a finished product in the most efficient way.

Pattern Tests

Analytical tests designed to detect regularities or specific structures within a set of data or physical phenomenon.

Production Process

The method or series of actions undertaken by a company to produce goods or services.

Center Line

In statistical process control, the center line represents the mean value in a control chart, serving as a benchmark for detecting variations in the process.