Materials Costs of $300,000 and Conversion Costs of $321,300 Were

question 181

Multiple Choice

Materials costs of $300,000 and conversion costs of $321,300 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, 100,000 units were started into production in September, and there were 8,000 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 8,000 units in the ending work in process?

• A) $24,000.
• B) $10,800.
• C) $20,400.
• D) $34,800.

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Definitions:

APS

Usually refers to Average Propensity to Save, an economic term that denotes the proportion of income that a person or population saves rather than spends on consumption.

Interest Rates

The percentage of a loan charged as interest to the borrower, typically expressed as an annual percentage rate.

Consumption

The total amount of goods and services bought and used by consumers, representing a major component of GDP and economic activity.

APC

The fraction of income that is spent on consuming goods and services is known as the Average Propensity to Consume.