20) Harry Company manufactures generic notebooks. Material is introduced at the
ID: 2585605 • Letter: 2
Question
20) Harry Company manufactures generic notebooks. Material is introduced at the beginning of the 20) process in the Printing Department. Conversion costs are applied uniformly throughout the process. The weighted-average method of product costing is used. Data for the Printing Department for the month of June follow: Work-in-processinventory, June 1: Units Direct materials(100% complete) Conversion costs(30% complete) 15,000 $35,000 $8,400 Units started in June Units completed in June Work-in-process inventory, June 30 65,000 62,000 18,000 Direct materials added in June Conversion costs added in June $285,000 $210,000 With regard to the work-in-process inventory on June 30, materials are 100 percent complete and conversion costs are 60 percent complete. The total cost of goods transferred out of the Printing Department is A) $420,825 B) $543,000 C) $495,000 D) $434,000Explanation / Answer
Choice D is Correct - $434,000
Particulars Direct materials Conversion Costs Total Cost Units % completion Equivalent Units Cost Units % completion Equivalent Units Cost Work in Process inventory June 1 15,000 100% 15,000 35,000 15,000 30% 4,500 8,400 Processed During the month Units Started in June 65,000 100% 65,000 285,000 65,000 Work in Process inventory 15,000 70% 10,500 Units Started & Completed in June 47,000 100% 47,000 Units Started & not Complete in June 18,000 60% 10,800 Total 80,000 80,000 320,000 72,800 210,000 Average Price Per unit 4.00 3.00 Units Completed in June 62,000 100% 62,000 248,000 62,000 186,000 434,000Related Questions
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