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Matthew Company Manufactures Phones in a Two- Department Process: Assembly

Question 62

Multiple Choice

Matthew Company manufactures phones in a two- department process: Assembly and Finishing. Information on the Assembly department follows:  Direct material s added $336,000 Direct labor 460,800 Factory overhead 230,200 Tot col costs to account for $1,027,200\begin{array}{ll}\text { Direct material s added } & \$ 336,000 \\\text { Direct labor } & 460,800 \\\text { Factory overhead } & 230,200 \\\text { Tot col costs to account for } & \$ 1,027,200\end{array} There was no beginning inventory, and of the 80,000 units started in production, 67,200 were completed and transferred to the Finishing department, while 12,800 units were still in process. These units had all materials added but were only 75% complete as far as conversion costs. The unit cost of conversion costs is:


A) $3.00
B) $9.00
C) $6.00
D) $8.64

Correct Answer:

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