Refer to LuLu, Inc. What would be the cost of goods transferred to the moulding department during May?

Question

Quizplus · Accepted Answer

To calculate the cost of goods transferred to the moulding department during May, we need to add up the total cost of goods completed in the assembly department during May and subtract the ending inventory of goods in process in the assembly department on May 31. From the provided data, the total cost of goods completed in the assembly department during May is $295,000 ($210,000 + $50,000 + $35,000), and the ending inventory of goods in process in the assembly department on May 31 is $13,500. Therefore, the cost of goods transferred to the moulding department during May is $281,500 ($295,000 - $13,500). Choice C is the correct answer.