The following is an account for a production department,showing its costs for one month:
Assume that materials are added at the beginning of the production process and that direct labor and overhead are applied uniformly.If the units in ending goods in process inventory cost $4,590,and the started and completed units cost $41,850,what was the cost of completing the units in the beginning goods in process inventory?
A)$12,150.
B)$ 2,160.
C)$ 7,560.
D)$54,000.
E)$37,260.

Question

The following is an account for a production department,showing its costs for one month:
 Assume that materials are added at the beginning of the production process and that direct labor and overhead are applied uniformly.If the units in ending goods in process inventory cost $4,590,and the started and completed units cost $41,850,what was the cost of completing the units in the beginning goods in process inventory?
A)$12,150. 
B)$ 2,160. 
C)$ 7,560. 
D)$54,000. 
E)$37,260.

Quizplus · Accepted Answer

Total costs = $5,400 + $21,600 + 16,200 + $10,800 = $54,000
Total transferred out = $54,000 - $4,590 = $49,410
BGIP transferred out = $49,410 - $41,850 = $7,560
Cost to complete BGIP = $7,560 - $5,400 = $2,160

The Following Is an Account for a Production Department,showing Its