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There are two questions included below for the data given. Make sure to answer both questions. 9 to 5, LLC, a manufacturer of typewriters,
There are two questions included below for the data given. Make sure to answer both questions. 9 to 5, LLC, a manufacturer of typewriters, uses the weighted average method in its process costing system. The company allocates manufacturing overhead to production at a rate of $6 per direct labor hour using a traditional, normal costing system. In its first production department, assembly, all direct material is added at the beginning of the production process and conversion costs are incurred uniformly throughout the production process. On July 31st, 8,000 typewriters, 75% complete with respect to conversion costs, were in the assembly department's work in process inventory. These units were assigned total costs of $27,780 on the July production cost report, $3,780 of which was for conversion costs. 120,000 typewriters were started during August. At the end of August, 10,000 typewriters were still in production in the assembly department. These units were 80% complete with respect to the conversion process. The following additional data are available for the department's August activities: Direct Materials Requisitioned Direct Labor Costs Incurred* $371,520 $43,560 *The direct labor wage rate was $18.15 per direct labor hour. Question 1 What was the cost to assemble one typewriter in July? OA. $3.63 B. $3.68 C. $4.85 D. $3.58 E. $3.47 Question 2 What was the cost transferred out of the assembly department during August? OA. $408,954 B. $422,440 C. $451,080 OD. $443,611 OE. $457,260
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