The Following Is an Account for a Production Department,showing Its

question 110

Multiple Choice

The following is an account for a production department,showing its costs for one month:
$$\begin{array}{c}\text { Goods in Process Inventory }\\\begin{array} { l r | } \hline \text { Balance } & 5,400 &&&&&&\\\text { Direct materials } & 21,600 \\\text { Direct labor } & 16,200 \\\text { Overhead } & 10,800\end{array}\end{array}$$
Assume that materials are added at the beginning of the production process and that direct labor and overhead are applied uniformly.If the units in ending goods in process inventory cost $4,590,and the started and completed units cost $41,850,what was the cost of completing the units in the beginning goods in process inventory?

• A) $12,150
• B) $2,160
• C) $7,560
• D) $54,000
• E) $37,260

---

Definitions:

Privatization

The transfer of ownership and management of enterprises from the public sector (government) to private individuals or organizations.

Command Economy

An economic system where the government has primary control over the production and distribution of goods and services.

Market Economy

An economic system where the prices of goods and services are determined in a free price system, primarily through supply and demand.

Nationalization

The process by which governments take private assets into public ownership, usually key industries or resources.