Figure 5-6
Kramer, Inc During April, 25,000 Units Were Completed and Transferred to the Two

Figure 5-6
Kramer, Inc., manufactures a product that passes through two processes: mixing and molding. All manufacturing costs are added uniformly in the mixing department.
Information for the mixing department for April follows: Work in progress, April 1:
$\begin{array}{lr}\text { Units }(35 \% \text { complete) } & 5,000 \\\text { Direct materials } & £ 24,000 \\\text { Direct labour } & £ 30,000 \\\text { Overhead } & £ 10,000\end{array}$ During April, 25,000 units were completed and transferred to the molding department. The following costs were incurred by the mixing department during April: $\begin{array}{lr}\text { Direct materials } & £ 90,000 \\\text { Direct labour } & 120,000 \\\text { Overhead } & 30,000\end{array}$ Two thousand five hundred (2,500) units that were 80 per cent complete remained in mixing at April 30.
-Refer to Figure 5-6. Kramer's cost of goods transferred to the molding department during April would be

A) £210,000.
B) £261,050.
C) £281,500.
D) £294,000.

Correct Answer:

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