Department S Had No Work in Process at the Beginning

question 3

Multiple Choice

Department S had no work in process at the beginning of the period. It added 12,000 units of direct materials during the period at a cost of $84,000; 9,000 units were completed during the period; and 3,000 units were 30% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $49,500 and factory overhead was $9,900.
The total conversion costs for the period were

• A) $59,400
• B) $49,500
• C) $143,400
• D) $9,900

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Definitions:

Machine Hours

A measure of production time used in cost accounting to allocate costs to products or job orders, based on the hours a machine is operated.

Batch Size

The quantity of items or units produced in a single manufacturing run or production cycle, which can significantly impact production efficiency and cost.

Complexity

The state or quality of being intricate or complicated, often used to describe systems, processes, or problems.

Overhead Resources

The ongoing operational costs of running a business that are not directly tied to producing goods or services.