Sabbath Company Produces Plastic Cups in a One- Department Process

Sabbath Company produces plastic cups in a one- department process. The following information is available: $\begin{array} { l } \text {Work-in- process inventory, beginning }& 0\\ \text { Unitsstarted}& 60,000\\ \text {Units complete and transferred out }&48,000 \\ \text {Work-in- process inventory,ending }&12,000 \\ \text {Direct materials added }& \$240,000\\ \text {Direct labor }&\$165,600 \\ \text {Factory overhead }&\$82,800 \\\end{array}$
The units still in process are 100% complete with respect to direct materials and 60% complete with respect to conversion costs. The total cost of units completed and transferred is:

A) $456,000
B) $408,000
C) $488,400
D) $90,240

Correct Answer:

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