Sifton Electronics Corporation Manufactures and Assembles Electronic Motor Drives for Video

Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the motor drives for several accounts. The process consists of a lean cell for each customer. The following information relates only to one customer's lean cell for the coming year. Projected labor and overhead, $7,370,000; materials costs, $28 per unit. Planned production included 4,000 hours to produce 27,500 motor drives. Actual production for August was 1,600 units, and motor drives shipped amounted to 1,380 units.
From the foregoing information, determine the production costs transferred to Cost of Goods Sold during August.

A) $369,840
B) $408,480
C) $428,800
D) $473,600

Correct Answer:

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