Realm Company Uses Process Costing and Had an Equivalent Cost

question 22

Multiple Choice

Realm Company uses process costing and had an equivalent cost of $2.30 per unit for direct materials and $1.80 per unit for conversion costs during May in its Rolling Department.There were 11,600 units completed and transferred to Finished Goods, and 1,000 units in ending Work in Process inventory that were 80% complete with respect to direct material and 60% complete with respect to conversion costs.How much is the cost of completed goods transferred to Finished Goods from the Rolling Department during May?

• A)$2,920
• B)$47,560
• C)$50,480
• D)$53,360

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Definitions:

Compression

The act of pressing together; in geology, it refers to the stress applied to materials causing a decrease in volume or shortening.

Thrust Faulting

A geological process where one rock layer is pushed up over another, often leading to mountain building.

Overriding Plate

The tectonic plate that sits above another plate at a convergent boundary, often responsible for mountain building and volcanic activity.

Ocean-Continent Convergent Boundary

A plate-tectonic boundary where an oceanic plate converges with a continental plate, generally expressed by subduction of the oceanic plate beneath the continent.