Gomez Company Manufactures Generic Notebooks $\begin{array} { l } \text {Direct materials added in June }&\$285,000\\ \text {Conversion costs added in June }&\$210,000\\\end{array}$

question 42

Multiple Choice

Gomez Company manufactures generic notebooks.Material is introduced at the beginning of the process in the Printing Department.Conversion costs are applied uniformly throughout the process.The weighted-average method of process costing is used.Data for the Printing Department for the month of June follow:
Work-In-Process Inventory,June 1:
$\begin{array} { l } \text { Units}&15,000\\ \text {Direct materials ( \( 100 \% \) complete) }&\$35,000\\ \text {Conversion costs ( \( 30 \% \) complete) }&\$8,400\\\end{array}$

$\begin{array} { l } \text {Units started in June }&65,000\\ \text { Units completed in June}&62,000\\ \text {Work-In-Process Inventory, June 30 }&18,000\\\end{array}$

$\begin{array} { l } \text {Direct materials added in June }&\$285,000\\ \text {Conversion costs added in June }&\$210,000\\\end{array}$

With regard to the Work-In-Process Inventory on June 30,materials are 100 percent complete and conversion costs are 60 percent complete.The total cost of goods transferred out of the Printing Department is ________.

• A) $420,825
• B) $434,000
• C) $495,000
• D) $543,000

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Definitions:

Marketing Concept

A business philosophy suggesting that the satisfaction of customer needs and wants is the primary focus of the business.

Firm's Long-Term Success

The sustained achievement of strategic goals and objectives that enables a business to grow, compete effectively, and maintain financial health over an extended period.

Customer Needs

The desires, requirements, or necessities that customers express, which can influence their purchasing decisions.

Empowerment

The process of increasing the capacity of individuals or groups to make choices and to transform those choices into desired actions and outcomes.