Sifton Electronics Corporation Manufactures and Assembles Electronic Motor Drives for Video

question 122

Multiple Choice

Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the motor drives for several accounts. The process consists of a just-in-time cell for each customer. The following information relates only to one customer's just-in-time cell for the coming year. Projected labor and overhead, $7,370,000; materials costs, $28 per unit. Planned production included 4,000 hours to produce 27,500 motor drives. Actual production for August was 1,600 units, and motor drives shipped amounted to 1,380 units. From the foregoing information, determine the amount of the conversion costs charged to Raw and In Process Inventory during August.

• A) $369,840
• B) $408,480
• C) $428,800
• D) $473,600

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Definitions:

Distribution System

The network or infrastructure that allows for the delivery of products and services from producers to end consumers, including logistics, warehouses, and retail outlets.

Shipping Cost

This term refers to the expense associated with the logistics of transporting goods from the seller to the buyer.

Just-In-Time Practices

Manufacturing and inventory strategy where materials and products are produced or acquired only as needed for use, reducing waste and inefficiencies.

Railroads

Transportation systems comprising tracks, trains, and supporting infrastructure that serve as a method for moving goods and people over long distances.