Ring Company Produces Two Types of Product: Small and Large

question 82

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 Bottling Department to Finished Goods for Work Order 10?

• A)$39,500
• B)$45,000
• C)$67,000
• D)$84,500

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Definitions:

Emotionally Expressive

Displaying emotions openly and freely through verbal or nonverbal communication.

Being Confrontational

The act of directly addressing disagreements or conflicts with others, often involving a challenge or assertion of one's position.

Performance Management

The process of ensuring employees' activities and outputs align with the organization's goals, through planning, monitoring, and reviewing employee performance.

Operations Team

A group within an organization responsible for overseeing and managing the day-to-day activities required to maintain and enhance the business's operational functions.