For the Assembly Department, Unit Materials Cost Is $8 and Unit

question 83

Multiple Choice

For the Assembly Department, unit materials cost is $8 and unit conversion cost is $12. If there are 8,000 units in ending work in process 75% complete as to conversion costs, the costs to be assigned to the inventory are

• A) $160,000.
• B) $136,000.
• C) $120,000.
• D) $144,000.

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Definitions:

Direct Labor

The labor costs directly attributed to the production of goods or services, such as wages paid to workers specifically engaged in manufacturing processes.

Factory Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor expenses.

Inventory Accounts

Accounts that track the value of a company's inventory, including raw materials, work-in-progress, and finished goods.

Finished Goods

Products that have completed the manufacturing process and are ready to be sold to customers.