Question: Answer the following questions using the information below. The Townsend Tractor Company manufactures small garden tractors on a highly automated mwembly line. Its costing system
Answer the following questions using the information below. The Townsend Tractor Company manufactures small garden tractors on a highly automated mwembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each tractor must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Townsend Tractor uses weighted average costing. Data for the Assembly Department for April 2014 are Work in process, beginning inventory 400 units Direct materials (100% complete) Conversion costs (40% complete) Units started during April 1200 units Work in process, ending inventory: 250 units Direet materials (100% complete) Conversion costs (80% complete) Costs for April 2014: Work in process, beginning inventory: Direct materials 5230 000 Conversion costs $220 000 Direct materials costs added during June $700 000 Conversion costs added during June $1 175 000 What is the total amount debited to the Work-in-Process account during the month of April? Select one: A. $2 855 000 B. $2 325 000 C. $1 875 000 D. $450 000
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