Answer the Following Question(s)using the Information Below

question 94

Multiple Choice

Answer the following question(s) using the information below:
Hawk Ltd.uses process costing in its Fabricating Department.At the beginning of October, it had 12,000 units in beginning work-in-process that were 40% complete with respect to conversion.During October it put 87,000 units into production and completed 89,000 good units.At October 31, there were 3,000 units in ending work-in-process that were 70% complete with respect to conversion.Direct materials are added at the beginning of the process.Inspection occurs at the end of the process and normal spoilage is 6% of good output.Costs related to the beginning inventory were $36,800 for direct materials and $28,600 for conversion costs.During the month, the company issued $280,000 of direct materials and incurred $599,400 of conversion costs.
-Assuming Hawk uses the weighted average method for process costing, the total cost of goods completed and transferred to finished goods is

• A)$854,400.
• B)$921,600.
• C)$877,440.
• D)$928,704.
• E)$905,664.

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Definitions:

Price Conspiracy

An illegal agreement between parties to fix prices, limit production, or divide markets, therefore, undermining the competitive market system.

Herfindahl-Hirschman Index

A measure of market concentration that is used to determine the level of competition within an industry.

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A form of health insurance designed to cover part of the costs associated with dental care.

Oligopolies

Market structures in which a few companies dominate the industry, limiting competition and potentially leading to higher prices for consumers.