Materials Costs of $600,000 and Conversion Costs of $765,000 Were

question 91

Multiple Choice

Materials costs of $600,000 and conversion costs of $765,000 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, 20,000 units were started into production in September, and there were 5,000 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 those units that were completed and transferred out of the process in September?

• A) $1,125,000.
• B) $1,500,000.
• C) $1,204,875.
• D) $1,023,750.

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Definitions:

Multiple Intelligences

A theory proposed by Howard Gardner, suggesting that individuals have various kinds of intelligences, such as logical, linguistic, musical, and spatial.

Sternberg's Triarchic Theory

A theory of intelligence proposing that human intelligence comprises three aspects: analytical, creative, and practical.

Analytical

Pertaining to or using analysis; characterized by the ability to break down complex information or problems into smaller parts for better understanding or solution.

Creative

Pertaining to or involving the use of the imagination or original ideas to create something.