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  3. consider the following production and cost data fo

Consider the following production and cost data for two products, L and C: ...

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Accounting

Consider the following production and cost data for two products, L and C:

Product L Product C
Contribution margin per unit $24 $18
Machine-hours needed per unit 2 hours 1 hours

The company can only perform 10,000 machine hours each period, due to limited skilled labor and there is unlimited demand for each product. What is the largest possible total contribution margin that can be realized each period?

rev: 01_23_2015_QC_CS-5061

$190,000

$180,000

$170,000

$177,500

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In December, one of the processing departments at Rumsey Corporation had ending work in process inventory of $21,000. During the month, $110,000 of costs were added to production and the cost of units transferred out from the department was $99,000.

In the department's cost reconciliation report for December, the cost of beginning work in process inventory for the department would be:

rev: 09_27_2016_QC_CS-63346

$78,000

$32,000

$10,000

$89,000

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