The cost of the units transferred to the Finishing Department during May was?
A) $40,000.
B) $42,400.
C) $50,000.
D) $53,000.

Question

Quizplus · Accepted Answer

According to the given information, the total cost of 8,000 units in the Assembly Department is $51,200. Therefore, the cost per unit is $6.40 ($51,200/8,000 units). The Finishing Department received 6,000 units from the Assembly Department, so the cost of those units is 6,000 units x $6.40 per unit = $38,400. Additionally, the Finishing Department transferred out 5,000 units, so the cost of those units is also 5,000 units x $6.40 per unit = $32,000. Therefore, the cost of the units transferred to the Finishing Department during May was $38,400 (transferred in) + $32,000 (transferred out) = $70,400. However, the question only asks for the cost of the units transferred in, so the correct answer is B) $42,400.

The Cost of the Units Transferred to the Finishing Department