The Debits to Work-In-Process for Department #2 for the Month

question 77

Multiple Choice

The debits to Work-in-Process for Department #2 for the month of April of the current year,together with information concerning production,are presented below.
$$\begin{array}{l}\text { WOFKHNPPROCESS - DEPARTMENT \#2 }\\\begin{array} { | l | r | l | l | } \hline \begin{array} { l } 1,200 \text { units, } 1 / 4 \\\text { completed }\end{array} & \$ 1,200 & \begin{array} { l } \text { Product } X , 6,200 \\\text { units }\end{array} & ? ? ? ? \\\hline \begin{array} { l } \text { From Dept. 1, 6,000 } \\\text { units }\end{array} & 3,600 & & \\\hline \text { Direct Labor } & 8,000 & & \\\hline \text { Factory } \mathrm { OH } & 4,800 & & \\\hline \begin{array} { l } 1,000 \text { units, } 1 / 2 \\\text { complete }\end{array} & ? ? ? ? & & \\\hline\end{array}\end{array}$$
All direct materials come from Department #1.The units completed include the 1,200 in process at the beginning of the period.Department #2 uses FIFO costing.What are the total costs to be accounted for on the production cost report for Department #2 for the period?

• A) $16,400.
• B) $17,600.
• C) $11,600.
• D) $12,660.

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Definitions:

Shut-Down Price

The price at which a firm ceases production in the short run because the market price has fallen below the minimum average variable cost.

Soybean Cost

The market price of soybeans, which fluctuates based on factors such as supply, demand, and market conditions.

Farmer

An individual engaged in the act of agriculture, raising living organisms for food or raw materials.

Short-Run Supply

The supply of goods that occurs within a timeframe where at least one factor of production is fixed.