Proteger Company manufactures insect repellant lotion. The Mixing Department, the first process department, mixes the chemicals required
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Question:
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:
Work in process, January 1 | — | |
Gallons started | 900,000 | |
Gallons transferred out | 756,000 | |
Direct materials cost | $900,000 | |
Direct labor cost | $2,000,000 | |
Overhead applied | $1,571,200 |
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:
a.$3,780,000
b.$3,571,200
c.$3,024,000
d.$4,471,200
Related Book For
Managerial Accounting
ISBN: 978-0078111006
14th edition
Authors: Ray Garrison, Eric Noreen and Peter Brewer
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