Ring Company Produces Two Types of Product: Small and Large

question 42

Multiple Choice

Ring Company produces two types of product: Small and Large. Two work orders for two batches of the products are shown below, along with some additional cost information:
$\begin{array}{lcc}&\text { Small }&\text { Large } \\&\text {Work Order } 10&\text { Work Order } 11\\\hline\text { Direct materials (actual costs) } & \$ 45,000 & \$ 75,000 \\\text { Applied conversion costs: } & & \\\text { Mixing } &?& ? \\\text { Cooking } & \$ 12,000 & \$ 12,000 \\\text { Bottling } & \$ 10,000 & \$ 15,000 \\\\\text { Batch size (bottles) }& 5,000 & 5,000\end{array}$
In the Mixing Department,conversion costs are applied on the basis of direct labour hours.Budgeted conversion costs for the department for the year were $50,000 for labour and $125,000 for overhead.Budgeted direct labour hours were 2,500.It takes three minutes to mix the ingredients needed for each bottle.
Small (Work Order 10) and Large (Work Order 11) flow through the Mixing Department first,then through the Cooking and Bottling departments.
-Refer to the figure.What is Ring Company's amount transferred from the Mixing Department to the Bottling Department for Work Order 10?

• A)$39,500
• B)$45,000
• C)$62,500
• D)$84,500

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Definitions:

Microglia

Specialized cells in the brain and spinal cord that act as the main form of active immune defense in the central nervous system.

Ventricles

Cavity or space within the brain filled with cerebrospinal fluid that helps protect the brain and spinal cord and provides nutrients.

Cerebrospinal Fluid

Cerebrospinal fluid is a clear, colorless body fluid found in the brain and spinal cord, providing cushioning and maintaining a stable environment.

CNS

Refers to the central nervous system, consisting of the brain and spinal cord, which serves as the processing center for the nervous system.