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 the 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

 

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Answer The Correct Option is D Solution ... View the full answer