Determine the costs to be assigned to the units transferred out a. 60,000b. 267,000c. 207,000d. 57,000 The Painting Department of Garmer Manufacturing Company hasthe following production and manufacturing cost data forSeptember.Production: Beginning inventory 8,000 units that are 100%complete as to materials and 40% complete as to conversioncosts; units started into production 27,000; ending inventory of12,000 units that are 20% complete as to conversion costs.Manufacturing Costs: Beginning work in process inventory ofP40,000, comprised of P30,000 of materials and P10,000 ofconversion costs. Materials added during the month, P110,000;labor and overhead applied during the month, P62,000 andP55,000, respectively.

Correct answer is option (c) 207,000.

Answered: Determine the costs to be assigned to…

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Finance

Determine the costs to be assigned to the units transferred out a. 60,000 b. 267,000 c. 207,000 d. 57,000

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

Determine the costs to be assigned to the units transferred out

a. 60,000

b. 267,000

c. 207,000

d. 57,000

The Painting Department of Garmer Manufacturing Company has
the following production and manufacturing cost data for
September.
Production: Beginning inventory 8,000 units that are 100%
complete as to materials and 40% complete as to conversion
costs; units started into production 27,000; ending inventory of
12,000 units that are 20% complete as to conversion costs.
Manufacturing Costs: Beginning work in process inventory of
P40,000, comprised of P30,000 of materials and P10,000 of
conversion costs. Materials added during the month, P110,000;
labor and overhead applied during the month, P62,000 and
P55,000, respectively.

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