Baron Corporation Has Two Sequential Processing Departments: Assembly Then Shaping

question 22

Multiple Choice

Baron Corporation has two sequential processing departments: Assembly then Shaping. The Shaping Department reports the following information. Conversion costs are applied evenly throughout the process. The total cost of units transferred out to finished goods would be closest to

• A)$949,000.
• B)$958,990.
• C)$423,800.
• D)$1,040,250.

---

Definitions:

UCC Article 2

A section of the Uniform Commercial Code that governs the sale of goods, ensuring standardized transactions across state lines.

Statute of Frauds

A legal requirement that certain types of contracts be in writing and signed by the parties involved to be enforceable.

Statute of Frauds

A legal concept that requires certain types of contracts to be executed in writing and signed by all parties involved to be legally enforceable.

Main Purpose Doctrine

A legal principle stating that if the main purpose of a guarantor to provide a guarantee is to serve their own interests, they may not require the benefit of the creditor first exhausting remedies against the principal debtor.