Sifton Electronics Corporation Manufactures and Assembles Electronic Motor Drives for Video

question 34

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 production costs transferred to Cost of Goods Sold during August.

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

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Definitions:

Differential Carrier

The housing that contains the differential gear mechanism, allowing for different wheel speeds when turning.

Crown Gear

A gear with teeth projecting at right angles to the wheel, allowing it to transmit power at an angle to the gear shaft.

Thrust Block

A concrete or other type of structure designed to absorb and distribute the thrust or force exerted by a pipe, particularly in bends or at junctions, to prevent movement.

Hub Inspection Window

A feature in some wheel hubs allowing visual inspection of internal components without disassembly to ensure proper maintenance.