The Following Is an Account for a Production Department, Showing

question 70

Multiple Choice

The following is an account for a production department, showing its costs for one month: Assume that materials are added at the beginning of the production process and that direct labor and overhead are applied uniformly. If the units in ending goods in process inventory cost $4,590, and the started and completed units cost $41,850, what was the cost of completing the units in the beginning goods in process inventory?

• A) $12,150.
• B) $2,160.
• C) $7,560.
• D) $54,000.
• E) $37,260.

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Definitions:

Plant Manager

An individual responsible for overseeing the daily operations of manufacturing plants and factories.

Profit

The financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes needed to sustain it.

Network Organization Design

An approach to structuring an organization where coordination and communication rely on informal relationships rather than a formal hierarchy.

Monitor

To regularly observe and check the progress or quality of something over a period of time, ensuring it meets desired standards or objectives.