Muhammad Company produces calendars in a one- department process. The following information is available: $$\begin{array} { l c }
\text { Directmaterialsadded } & \$ 30,000 \
\text { Directlabor } & \$ 20,700 \
\text { Factory overhead } & \$ \mathbf { 1 0 , 3 5 0 } \
\text { Work-in-process inventory,beginning } & - \mathbf { 0 - } \
\text { Units started } & \mathbf { 1 5 , 0 0 0 } \
\text { Units completed and transferred out } & \mathbf { 1 2 , 0 0 0 } \
\text { Work-in-process inventory,ending } & \mathbf { 3 , 0 0 0 }
\end{array}$$ The units still in process are 100% complete with respect to direct materials and 60% complete with respect to conversion costs. The total of costs to account for is:
A) $20,700
B) $50,700
C) $30,000
D) $61,050

Question

Muhammad Company produces calendars in a one- department process. The following information is available: $$\begin{array} { l c } 
\text { Directmaterialsadded } & \$ 30,000 \
\text { Directlabor } & \$ 20,700 \
\text { Factory overhead } & \$ \mathbf { 1 0 , 3 5 0 } \
\text { Work-in-process inventory,beginning } & - \mathbf { 0 - } \
\text { Units started } & \mathbf { 1 5 , 0 0 0 } \
\text { Units completed and transferred out } & \mathbf { 1 2 , 0 0 0 } \
\text { Work-in-process inventory,ending } & \mathbf { 3 , 0 0 0 }
\end{array}$$ The units still in process are 100% complete with respect to direct materials and 60% complete with respect to conversion costs. The total of costs to account for is:
A) $20,700
B) $50,700
C) $30,000
D) $61,050

Quizplus · Accepted Answer

The total costs to account for include direct materials, direct labor, and factory overhead. Therefore, the total is $30,000 (direct materials) + $20,700 (direct labor) + $10,350 (factory overhead) = $61,050.

Muhammad Company Produces Calendars in a One- Department Process The Units Still in Process Are 100% Complete with Respect