Bunn Company produces calendars in a one-department process. The following information is available:
The units still in process are 100 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs.
-The units still in process are 100 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs. The total of costs to account for is
A) $122,100.
B) $60,000.
C) $41,400.
D) $20,700.

Question

Bunn Company produces calendars in a one-department process. The following information is available:
  The units still in process are 100 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs.
-The units still in process are 100 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs. The total of costs to account for is
A) $122,100. 
B) $60,000. 
C) $41,400. 
D) $20,700.

Quizplus · Accepted Answer

The total costs to account for include both direct materials and conversion costs. Since the units are 100% complete for materials and 60% complete for conversion, the total costs are calculated by adding the full direct materials cost and 60% of the conversion costs.

Bunn Company Produces Calendars in a One-Department Process