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:

Cash Dividends

Payments made by a corporation to its shareholders from its profits in the form of cash.

Retained Earnings

The portion of a company's profits not distributed as dividends to shareholders, instead reserved for reinvestment in the business or to pay off debt.

Large Stock Dividends

Distribution of a greater than typical percentage of shares to shareholders, typically impacting the stock's value and distribution.

Par Value

The face value of a bond or stock as stated by the issuing company, which does not necessarily match its market value.