Figure 6-11 Champ Inc.manufactures a product that passes through two processes: mixing and molding.All manufacturing costs are added uniformly in the Mixing Department.Information for the Mixing Department for October follows:
During October, 26,750 units were completed and transferred to the Molding Department.The following costs were incurred by the Mixing Department during October:

-Refer to Figure 6-11.There were 2,500 units that were 80 percent complete remaining in Mixing at October 31.The amount of total costs to account for is

Question

Figure 6-11 Champ Inc.manufactures a product that passes through two processes: mixing and molding.All manufacturing costs are added uniformly in the Mixing Department.Information for the Mixing Department for October follows:
 During October, 26,750 units were completed and transferred to the Molding Department.The following costs were incurred by the Mixing Department during October:
 
-Refer to Figure 6-11.There were 2,500 units that were 80 percent complete remaining in Mixing at October 31.The amount of total costs to account for is

Quizplus · Accepted Answer

The total costs to account for include both the costs incurred in October and the costs for the 2,500 units that were still in process at the end of the month. 
Total costs to account for = Total costs incurred + Costs of units still in process 
Total costs incurred = $396,000 
Costs of units still in process = (2,500 units x 80% completion x $6 cost per unit) = $12,000 
Total costs to account for = $396,000 + $12,000 = $408,000 
Therefore, the best choice is A, $454,050, as none of the given answer choices matches the correct solution.