Information for the Hi-Test company’s production process for September follows. Assume that all materials are added at the beginning of this production process, and that conversion costs are added uniformly throughout the process. Work in process inventory, September 1 (2,000 units, 100% complete with respect to direct materials, 80% complete with respect to direct labor and overhead; consists of $45,000 of direct materials cost and $56.320 conversion cost). = $101,320 Costs incurred in September       Direct materials = $375,000       Conversion. = $341.000 Work in process inventory, September 30 (7.000 units, 100% complete with respect to direct materials, 40% complete with respect to conversion) = $___?       Units started in September = 28.000       Units completed and transferred to finished goods inventory. = 23.000   < Question > The total variable cost of goods transferred out.  The total variable cost of ending work in process inventory.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Information for the Hi-Test company’s production process for September follows. Assume that all materials are added at the beginning of this production process, and that conversion costs are added uniformly throughout the process.

  • Work in process inventory, September 1 (2,000 units, 100% complete with respect to direct materials, 80% complete with respect to direct labor and overhead; consists of $45,000 of direct materials cost and $56.320 conversion cost). = $101,320
  • Costs incurred in September

      Direct materials = $375,000

      Conversion. = $341.000

  • Work in process inventory, September 30 (7.000 units, 100% complete with respect to direct materials, 40% complete with respect to conversion) = $___?

      Units started in September = 28.000

      Units completed and transferred to finished goods inventory. = 23.000

 

< Question >

  1. The total variable cost of goods transferred out. 
  2. The total variable cost of ending work in process inventory.
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