Goody Company Adds Direct Materials at the Beginning of the Process

question 12

Multiple Choice

Goody Company adds direct materials at the beginning of the process and adds conversion costs throughout the process.Data for the finishing department follows: $$\begin{array} { | l | r | } \hline \text { WIP, April 1 } & 12,000 \text { units } \\\hline \text { Transferred-in costs in WIP, April 1 } & \$ 78,940 \\\hline \text { Direct materials (100\%) in WIP, April 1 } & \$ 22,420 \\\hline \text { Conversion costs (70\%) in WIP, April 1 } & \$ 21,385 \\\hline \text { Units transferred-in } & 45,000 \\\hline \text { Transferred-in costs during April } & \$ 540,900 \\\hline \text { Units completed } & 42,000 \\\hline \text { April direct materials cost } & \$ 157,500 \\\hline \text { April conversion costs } & \$ 230,837 \\\hline \text { WIP, April 30 } & 15,000 \text { units } \\\hline \text { (100\% for materials and 60\% for conversion } & \\\text { costs) } & \\\hline\end{array}$$
-The total number of physical units for which we have to account is:

• A)42,000.
• B)60,000.
• C)57,000.
• D)54,000.

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Definitions:

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The series of steps and stages through which information is transmitted and received between communicators.

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Elements that influence an individual's behavior and attitudes, combining social and psychological aspects, such as group dynamics and personal motivations.

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The legal right or condition of having control over property, which includes both the possession and title of the property.