COST ACCOUNTING
PROCESS COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Materials costs of $1, 026, 000 and conversion costs of $1, 370, 480 were charged to a processing department in the month of September. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. There were no units in beginning work in process, 190, 000 units were started into production in September, and there were 8, 000 units in ending work in process that were 40% complete at the end of September.What was the total amount of manufacturing costs assigned to those units that were completed and transferred out of the process in September?
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$2, 396, 480.
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$2, 329, 600.
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$982, 800.
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$2, 432, 000.
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Explanation:
Detailed explanation-1: -Conversion costs include direct labor and overhead expenses incurred as a result of the transformation of raw materials into finished products.
Detailed explanation-2: -The total conversion cost formula is: Conversion Costs = Direct Labor Costs + Manufacturing Overheads.
Detailed explanation-3: -How do you calculate conversion costs? Conversion costs are calculated by simply adding up all direct labor costs and manufacturing overhead costs. Direct labor costs are the labor costs that can be directly traced to a product.
Detailed explanation-4: -FALSE. Conversion costs are direct labor and manufacturing overhead costs.
There is 1 question to complete.