LDR Manufacturing Produces a Pesticide Chemical and Uses Process Costing

question 157

Multiple Choice

LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments-Mixing, Refining, and Packaging. On January 1, 2012, the Refining Department had 2,000 liters of partially processed product in production. During January, 32,000 liters were transferred in from the Mixing Department and 29,000 liters were completed and transferred out. At the end of the month, there were 5,000 liters of partially processed product remaining in the Refining Department. See additional details below. Refining Department, beginning balance at January 1, 2012
Costs added during January
Refining Department, ending balance at January 31, 2012
Please perform a process costing analysis and answer the following question:
For the Refining Department in the month of January, what was the total cost of ending inventory? (Please round to nearest whole dollar.)

• A)$35,000
• B)$52,550
• C)$46,250
• D)$33,600

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Definitions:

Foreign Aid

Financial, technical, or humanitarian assistance provided by one country to another, often aimed at promoting development or welfare.

Poverty Levels

Economic thresholds below which individuals or families are considered to be living in poverty, often measured by income.

Gross Domestic Product

The total value of all goods and services produced within a country's borders in a specific time period, used as a broad measure of economic activity.

Final Goods

Products that have completed the manufacturing process and are ready for use by consumers or businesses without further transformation.