DynaVenture Enterprises uses a process costing system.During May, the Processing Department transferred out 43,000 units.The Work in Process Inventory at May 31 in the Processing Department consisted of 3,200 equivalent units of material and 960 equivalent units of labor and overhead.The cost per equivalent unit was $1.50 for materials and $3.20 for labor and overhead.Which of the following amounts will you find reported as "Total Cost to Account for" in the production cost report for May?
A)$209,972
B)$202,100
C)$217,140
D)$206,612

Question

Quizplus · Accepted Answer

The "Total Cost to Account for" includes the costs of units transferred out and the costs of ending work in process inventory. The calculation is as follows: - Transferred out: 43,000 units (assuming each unit incurs the full cost of materials, labor, and overhead). However, the cost per unit isn't directly provided for transferred out units, so we focus on the ending inventory to find part of the total cost. - Ending inventory costs: Materials = 3,200 units * $1.50 = $4,800 Labor and overhead = 960 units * $3.20 = $3,072 Total ending inventory cost = $4,800 + $3,072 = $7,872 Without the specific costs for the transferred out units, we can't directly calculate their total cost. However, given the options and knowing the ending inventory cost, option A ($209,972) is the only one that could feasibly include both the substantial cost of 43,000 units transferred out and the additional $7,872 for the ending inventory, suggesting some calculation behind the scenes to reach this total.

DynaVenture Enterprises Uses a Process Costing System