LuLu, Inc Manufactures a Product That Passes Through Two Processes: Mixing

question 16

Multiple Choice

LuLu, Inc. manufactures a product that passes through two processes: mixing and moulding. All manufacturing costs are added uniformly in the mixing department.
Information for the mixing department for May follows:
During May, 25,000 units were completed and transferred to the moulding department. The following costs were incurred by the mixing department during May:
Work in process, May 1:
$\begin{array}{lr}\text { Units (35\% complete) } & 5,000 \\\text { Direct materials } & \$ 24,000 \\\text { Direct labour } & \$ 30,000 \\\text { Overhead } & \$ 10,000\end{array}$ By May 31, 2,500 units that were 80% complete remained in the mixing department. LuLu uses the weighted average method. $\begin{array}{lr}\text { Direct materials } & \$ 90,000 \\\text { Direct labour } & 120,000 \\\text { Overhead } & 30,000\end{array}$
-Refer to the Figure.What would be LuLu's cost of goods transferred to the moulding department during May?

• A)$210,000
• B)$261,050
• C)$281,500
• D)$294,000

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Definitions:

Inherently Dislike Work

A viewpoint suggesting that people naturally do not enjoy work and require external motivation to be productive.

Descriptive

Relating to the detailed description of characteristics, behaviors, or attributes, rather than explanations based on cause and effect.

Skilled Workers

Individuals who have acquired specialized skills, knowledge, and expertise through training or experience, often required for specific tasks or professions.

Repetitive Tasks

Tasks that are performed in the same manner, following a set pattern or sequence, with little variation.