In a Department, 22,000 Units Are Completed and Transferred Out

question 135

Multiple Choice

In a department, 22,000 units are completed and transferred out and 6,200 remain in ending WIP at 55% complete. If an equivalent unit costs $8.00 for direct materials, what is the value of materials transferred out?

• A) $49,600
• B) $126,400
• C) $176,000
• D) $27,280

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Definitions:

Paid-In Capital in Excess of Par

The amount of capital received from investors for stock, in excess of the par value of the shares.

Common Stock

A type of equity ownership in a corporation, with voting rights and potential dividends, representing a share in the company's profits and losses.

Date of Declaration

The date on which a company’s board of directors announces the distribution of a dividend or other important decision.

Date of Record

The specific date set by a corporation’s board of directors after which the shareholders on record will be entitled to receive dividends or stock rights.