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:

Planning Benefits

The positive outcomes, such as increased efficiency, risk mitigation, and goal achievement, that result from effective organizational or project planning.

Organizations

Entities comprised of individuals working together towards common objectives or goals, structured in a systematic manner.

Management By Objectives

A management model that involves setting specific objectives that are mutually agreed upon by employees and management.

Productivity

Refers to the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.