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:

Cimabue

An Italian painter and designer from the late 13th century, considered one of the last great Italian artists in the Byzantine style.

Late Gothic

A style of Gothic architecture and art that developed in the late Middle Ages, characterized by elaborate decorations, intricate designs, and the use of flying buttresses.

Doge's Palace

A historic Venetian palace in Italy, once the residence of the Doge of Venice, known for its Gothic architecture and position overlooking the Grand Canal.

Venice

A city in northeastern Italy, famed for its canals, Gothic and Renaissance architecture, and as a center for trade and the arts during the Renaissance.