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.

Question

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.

Quizplus · Accepted Answer

The cost of the product that was completed and transferred to finished goods is the sum of the material costs and the conversion costs incurred during the period. The material costs were $3,152,000 and the conversion costs were $591,000. Therefore, the total cost of the completed product is $3,152,000 + $591,000 = $3,610,000.

MegaRock Produces Quick Setting Concrete Mix