Brooks Corporation Has Two Sequential Processing Departments: Assembly Then Shaping

question 192

Multiple Choice

Brooks Corporation has two sequential processing departments: Assembly then Shaping.The Shaping Department reports the following information.Conversion costs are applied evenly throughout the process. $\begin{array}{|l|r|}\hline \text { Beginning WIP inventory } & 6,000 \text { units } \\\hline \text { Transferred-in costs in beginning WIP inventory } & \$ 108,000 \\\hline \text { Direct materials cost in beginning WIP inventory } & \$ 26,500 \\\hline \text { Conversion costs in beginning WIP inventory } & \$ 20,750 \\\hline \text { Units transferred-in } & 55,000 \text { units } \\\hline \text { Transferred-in costs } & \$ 530,000 \\\hline \text { Units completed } & \$ 0,000 \\\hline \text { Costs added: direct materials } & \$ 163,500 \\\hline \text { Costs added: conversion costs } & 11,000 \text { units } \\\hline \text { Ending WIP inventory } & \\\hline \begin{array}{l}\text { (50\% complete for materials and } 40 \% \text { complete for } \\\text { conversion) }\end{array} & \\\hline\end{array}$

-The total cost of units in ending WIP inventory-Shaping would be closest to:

• A)$ 38,730.
• B)$110,433.
• C)$153,779.
• D)$202,460.

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Definitions:

Fallacy

A flaw or error in reasoning that undermines the logical validity of an argument.

Sanctions

Penalties or other forms of enforcement used to encourage compliance with laws, regulations, or rules.

Subjectivism

The philosophical stance that reality or knowledge is subjective, depending on the individual's perceptions or feelings.

Fallacy

A mistake in logic that makes an argument unsound.