Black Company Manufactures Gadgets in One Department The Units in the Ending Work-In-Process Inventory Are 0 Percent

question 17

Multiple Choice

Black Company manufactures gadgets in one department.The following information is available:
$\begin{array} { l } \text {Work-In-Process Inventory, beginning }&0\\ \text { Units started}&60,000\\ \text {Units completed and transferred }&48,000\\ \text {Work-In-Process Inventory, end}&12,000\\\end{array}$

$\begin{array} { l } \text {Direct materials added }&\$ 240,000\\ \text {Direct labor }&\$164,780 \\ \text {Factory overhead }&\$ 82,000\\\end{array}$

The units in the ending Work-In-Process Inventory are 0 percent complete with respect to direct materials and 50 percent complete with respect to conversion costs.Direct materials are added at the end of the process.The total cost of units completed and transferred is ________.

• A) $90,240
• B) $411,360
• C) $459,360
• D) $488,400

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Definitions:

Valuing Business

The process of determining the economic value of a company using various methods, including financial analysis, market comparisons, and asset evaluation.

Business Valuation

The process of determining the economic value of a business or company, using various methodologies to assess its overall worth.

Balance Sheet Method

The balance sheet method is an accounting technique used to calculate the net worth of a company by summarizing its financial assets, liabilities, and equity at a specific point in time.

Asset Method

A valuation technique that determines a company's value based on the total net assets it possesses, often used in the context of mergers, acquisitions, and financial reporting.