1. Cranford Company completed and transferred out 4,000 units in May 2020. There were 100 units in the Work-in-Process Inventory on May 31, 2020, 30% complete as to conversion costs and 100% complete as to materials. The month's charges for conversion costs and material costs were $24,180 and $16,400, respectively. There was no beginning inventory on May 1, 2020. What is the cost of the work transferred-out during May, assuming that Cranford uses weighted-average process costing?

Multiple Choice

• $26,400.

• $40,580.

• $18,820.

• $40,000.

2. Family Farms delivers fresh produce to local restaurants. The company is planning to add a home delivery service. The company will use the company-owned delivery vehicles that are currently used to make early morning deliveries to restaurants (i.e., home deliveries will be in the afternoon and evening). The increase in deliveries would require additional gas, oil, and maintainance costs per month: the company estimates an additional $5,400. The company will allocate 40% of the existing $6,300 fixed delivery vehicle costs to the home delivery service. The home delivery service would require an additional $12,900 in labor costs per month. What is the differential delivery cost per month for expanding into the home delivery market?

Multiple Choice

• $20,820.

• $12,900.

• $20,460.

• $18,300.