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:

Purchase Obligations

Commitments made by a company to buy goods or services under specified terms in the future.

Product or Service Restrictions

refer to limitations or rules placed on the sale or provision of certain goods or services, often for safety, legal, or ethical reasons.

Franchise Contracts

Legal agreements granting someone the rights to operate a business under a franchisor's brand and business model.

Indefinitely

For an unspecified or unlimited period of time.