Baron Corporation has two sequential processing departments: Assembly then Shaping: The Shaping Department reports the following information. Conversion costs are applied evenly throughoutt the process.
- Beginning WIP inventory = 8,000 units
- Transferred-in cost in beginning WIP Inventory = $110,200
- Direct Materials cost in beginning WIP inventory = $24,500
- Conversion costs in beginning WIP inventory = $22,750
- units transferred-in = 57,000 units
- Transferred - in costs = $546,300
- Units completed = 52,000
- Cost added: direct materials = $167,120
- Cost added: conversion costs = $245,570
- Ending WIP inventory = 13,000 units
The Total cost of units transferred out to finished goods would be closest to. Show calculation.
a) 958,990
b) 949,000
c) 423,800
d) 1,040,250