Chapter 6, Problem 30E

Proteger Company manufactures insect repellant lotion. The Mixing Department, the first process department, mixes the chemicals required for the repellant. The following data are for the current year:

Direct materials are added at the beginning of the process. Ending inventory is 95 percent complete with respect to direct labor and overhead. The cost of goods transferred out for the year is:

1. a. $4,471,200
2. b. $3,571,200
3. c. $3,780,000
4. d. $3,024,000