Materials Costs of $600000 and Conversion Costs of $642600 Were

question 184

Multiple Choice

Materials costs of $600000 and conversion costs of $642600 were charged to a processing department in the month of September. Materials are added at the beginning of the process while conversion costs are incurred uniformly throughout the process. There were no units in beginning work in process 100000 units were started into production in September and there were 8000 units in ending work in process that were 40% complete at the end of September. What was the total amount of manufacturing costs assigned to the 8000 units in the ending work in process?

• A) $48000.
• B) $21600.
• C) $40800.
• D) $69600.

---

Definitions:

Marginal Propensity to Save

The fraction of an increase in income that is saved by an individual or population, representing how savings change with changes in disposable income.

Consumption Function

The consumption function is an economic formula that represents the relationship between total consumption and gross national income, predicting consumer spending.

Marginal Propensity to Consume

The ratio of change in consumption to the change in disposable income, indicating how much income will be spent rather than saved.

Investment

Investment involves allocating resources, such as capital or time, in the expectation of generating a profit or benefit in the future.