MegaRock Produces Quick Setting Concrete Mix

question 115

Multiple Choice

MegaRock produces quick setting concrete mix. Production of 200,000 tons was started in April, 190,000 tons were completed. Material costs were $3,152,000 for the month while conversion costs were $591,000. There was no beginning work-in-process; the ending work-in-process was 70% complete.
-What is the cost of the product that was completed and transferred to finished goods?

• A) $3,610,000.
• B) $3,555,850.
• C) $2,994,400.
• D) $3,743,000.

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Definitions:

Contract Rate

The agreed-upon interest rate specified in a contract, often related to loans or financial agreements.

Market Rate

The prevailing rate of interest available on investments or the average cost of borrowing money in the market.

Issued

The process of making securities available for sale to the public or the amount of a product or securities distributed to the public.

Contract Rate

The agreed-upon interest rate specified within a contract, particularly in lending agreements.