Alto technologies produces audio switch equipment for aircraft. The direct materials are added at the...
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Alto technologies produces audio switch equipment for aircraft. The direct materials are added at the start of the production process, while conversion costs are added uniformly throughout the production process. Alto had no inventory at the start of January. During the month, it incurred direct materials costs of $1,871,500 and conversion costs of $9,108,000. Alto started 950,000 switches and completed 850,000 of them in January. Ending inventory was half completed as to conversion costs. The cost of completed units is: a. $10,782,500 b. $10,276,500 c. $9,108,000 d. $10,979,500
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