Multiple Choice
Andersen Corporation
Andersen Corporation has the following information for the current month:
| Units started | 95,000 units |
| Beginning Work in Process: (30% complete) | 15,000 units |
| Normal spoilage (discrete) | 3,000 units |
| Abnormal spoilage | 4,000 units |
| Ending Work in Process: (75% complete) | 15,000 units |
| Transferred out | 88,000 units |
| Beginning Work in Process Costs: | |
| Material $18,000 | |
| Conversion 14,000 |
All materials are added at the start of the production process.Andersen Corporation inspects goods at 75 percent completion as to conversion.
Refer to Andersen Corporation.Assume that the costs per EUP for material and conversion are $2.00 and $2.25,respectively.Using FIFO,what is the total cost assigned to the transferred-out units (rounded to the nearest dollar) ?
A) $344,938
B) $365,875
C) $376,938
D) $378,625
Correct Answer:
Verified
Correct Answer:
Verified
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