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Dvinal [7]
4 years ago
12

The following is an account for a production department, showing its costs for one month:

Mathematics
1 answer:
deff fn [24]4 years ago
6 0

Answer:

option (b)  $9,360

Step-by-step explanation:

Given:

Goods in Process Inventory

Balance = $6,300

Direct materials = $22,500

Direct labor = $17,100

Overhead = $11,700

The cost of units in ending goods in process inventory = $5,490

The cost of started and completed units = $42,750

Now,

The cost of total Goods in Process Inventory will be

= Balance + Direct materials + Direct labor + Overhead

= $6,300 + $22,500 + $17,100 + $11,700

= $57,600

also,

Cost of units to be transferred out

= cost of total Goods in Process Inventory - ( cost of units in ending goods in process inventory )

= $57,600 - $5,490

= $52,110

Thus,

Cost of Completed Goods in Beginning Inventory

= Cost of units to be transferred out - cost of started and completed units

= $52,110 - $42,750

= $9,360

Hence, the answer is option (b)  $9,360

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