Sunset Inc. Plastics Company uses process costing and provided the following information for 2020: Units Percent Complete Percent Complete Direct Materials Conversion Costs Work-in-process at January 1 18,000 30% 70% Units started during the year 190,000 Work-in-process at December 31 30,000 80% 30% The cost of the beginning work-in-process included $103,750 for direct materials used and $54,380 for direct labor. Production costs during year were $603,250 for direct materials and $110,180 for direct labor. The company applies manufacturing overhead using direct labor costs. The manufacturing overhead rate for all years is 50% of direct labor. The cost transferred to finished goods inventory is: Multiple Choice $ 775,260 $ 862,600 $ 1,089,000 $ 857,960 Please don't provide answer in image format thank you
Sunset Inc. Plastics Company uses process costing and provided the following information for 2020: Units Percent Complete Percent Complete Direct Materials Conversion Costs Work-in-process at January 1 18,000 30% 70% Units started during the year 190,000 Work-in-process at December 31 30,000 80% 30% The cost of the beginning work-in-process included $103,750 for direct materials used and $54,380 for direct labor. Production costs during year were $603,250 for direct materials and $110,180 for direct labor. The company applies manufacturing overhead using direct labor costs. The manufacturing overhead rate for all years is 50% of direct labor. The cost transferred to finished goods inventory is: Multiple Choice $ 775,260 $ 862,600 $ 1,089,000 $ 857,960 Please don't provide answer in image format thank you
Chapter1: Financial Statements And Business Decisions
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Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Sunset Inc. Plastics Company uses process costing and provided the following information for 2020:
Units Percent Complete Percent Complete
Direct Materials Conversion Costs
Work-in-process at January 1 18,000 30% 70%
Units started during the year 190,000
Work-in-process at December 31 30,000 80% 30%
The cost of the beginning work-in-process included $103,750 for direct materials used and $54,380 for direct labor. Production costs during year were $603,250 for direct materials and $110,180 for direct labor. The company applies manufacturing overhead using direct labor costs. The manufacturing overhead rate for all years is 50% of direct labor.
The cost transferred to finished goods inventory is:
Multiple Choice
$ 775,260
$ 862,600
$ 1,089,000
$ 857,960
Please don't provide answer in image format thank you
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