Berry Corporation began making scented body lotion in March of the current year. There is only one process in the manufacture of this product, and in March the costs of production were $24,600 for materials and $35,730 for processing. During the month, 12,300 pints of materials were placed in production. At the end of March, 1,250 pints of materials were still being processed and were 70% complete. Assume that all materials were added at the beginning of the production process. Given this information, the total cost of goods transferred to Finished Goods Inventory was:

Question

Quizplus · Accepted Answer

The total cost of goods transferred to Finished Goods Inventory is the sum of the costs of materials and processing incurred during the period, plus the cost of the beginning work in process inventory, minus the cost of the ending work in process inventory.In this case, the costs of materials and processing incurred during the period are $24,600 and $35,730, respectively. The cost of the beginning work in process inventory is zero, since there was no work in process inventory at the beginning of the period. The cost of the ending work in process inventory is $1,250 x 70% x ($24,600 + $35,730) = $2,625.Therefore, the total cost of goods transferred to Finished Goods Inventory is $24,600 + $35,730 + $0 - $2,625 = $57,705.

Berry Corporation Began Making Scented Body Lotion in March of the Current