A Pasta Maker Gives Us Their Data for the Year

question 133

Multiple Choice

A pasta maker gives us their data for the year: $\begin{array}{|l|r|}\hline \text { WIP inventory, beginning } & 0 \text { units } \\\hline \text { Units started } & 7,200 \text { units } \\\hline \begin{array}{l}\text { Units completed and } \\\text { transferred out }\end{array} & 6,700 \text { units } \\\hline \text { WIP inventory, ending } & 500 \text { units } \\\hline \text { Direct materials } & \$ 12,600 \\\hline \text { Direct labor } & \$ 6,100 \\\hline \text { Manufacturing overhead } & \$ 3,500 \\\hline\end{array}$ Units in ending WIP inventory were 100% complete for materials and 40% complete for conversion costs.
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On December 31,the total cost of the units in ending WIP would be closest to:

• A)$ 1,153.
• B)$ 1,052.
• C)$21,047.
• D)$ 1,571.

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Definitions:

Land

The natural resource encompassing the earth's surface, not including water or buildings.

Agriculture Sales

The trading of products and services related to farming and other agricultural activities.

Industrial Capitalist

An individual or entity that invests in industries for profit through the ownership of physical goods and capital goods used in production.

19th Century

The period from January 1, 1801, to December 31, 1900, characterized by industrialization, colonial expansion, significant technological advancements, and various social changes.