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Tear Company Manufactures Generic Notebooks The Total Cost of Goods Transferred Out of the Printing

Question 28

Multiple Choice

Tear Company manufactures generic notebooks. Material is introduced at the beginning of the 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- process inventory, June 1 Units 15,000 units  Direct materials (100% complete)  $34,000 Conversioncosts( 30% complete)  $14,000 Units started in June 65,000 units  Units completed in June 62,000 units Work-in-process inventory,June 30 18,000 units (100% complete as to materials  and 60% complete as to conversioncosts)   Direct materials added in June $285,000 Conversioncostsadded in June $210,000\begin{array}{l}\text { Work- in- process inventory, June } 1\\\begin{array} { l r } \text { Units } & 15,000 \text { units } \\\text { Direct materials (100\% complete) } & \$ 34,000 \\\text { Conversioncosts( } 30 \% \text { complete) } & \$ 14,000 \\& \\\text { Units started in June } & 65,000 \text { units } \\\text { Units completed in June } & 62,000 \\\text { units Work-in-process inventory,June 30 } & 18,000 \\\text { units } & \\\quad ( 100 \% \text { complete as to materials } & \\\text { and } 60 \% \text { complete as to conversioncosts) } \\& \\\text { Direct materials added in June } & \$ 285,000\\\text { Conversioncostsadded in June } & \$ 210,000\end{array}\end{array} The total cost of goods transferred out of the Printing department is:


A) $420,825
B) $543,000
C) $438,340
D) $495,000

Correct Answer:

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