For the month of June, Clara Gum Company had cost per equivalent unit of $0.60 f

Question

For the month of June, Clara Gum Company had cost per equivalent unit of $0.60 for materials (sugar, artificial flavors, etc.) and $.80 for conversion costs (labor and overhead). At Clara Gum, units are measured in packs. The company began the month with 5,000 packs of gum. By the end of the month, the company had completed 55,000 packs, and 9,000 packs were in process. The in-process units were 100 percent complete with respect to material and 60 percent complete with respect to labor and overhead. How much is the cost of items completed and transferred to finished goods inventory? Answer                                                   A.            $9,720                             B.            $77,000                             C.            $86,720                             D.            $38,400 For the month of June, Clara Gum Company had cost per equivalent unit of $0.60 for materials (sugar, artificial flavors, etc.) and $.80 for conversion costs (labor and overhead). At Clara Gum, units are measured in packs. The company began the month with 5,000 packs of gum. By the end of the month, the company had completed 55,000 packs, and 9,000 packs were in process. The in-process units were 100 percent complete with respect to material and 60 percent complete with respect to labor and overhead. How much is the cost of items completed and transferred to finished goods inventory? For the month of June, Clara Gum Company had cost per equivalent unit of $0.60 for materials (sugar, artificial flavors, etc.) and $.80 for conversion costs (labor and overhead). At Clara Gum, units are measured in packs. The company began the month with 5,000 packs of gum. By the end of the month, the company had completed 55,000 packs, and 9,000 packs were in process. The in-process units were 100 percent complete with respect to material and 60 percent complete with respect to labor and overhead. How much is the cost of items completed and transferred to finished goods inventory? $9,720 $77,000 $86,720 $38,400                             A.            $9,720                             B.            $77,000                             C.            $86,720                             D.            $38,400

Explanation / Answer

D. $38,400

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