Question

Alpha, Inc., manufactures Product A. The following costs are incurred by Alpha during the month of July:

CuttingProcessGrindingProcessDirect materials$4,250$2,050Direct labor9501,000Applied overhead2,400750
Determine the costs transferred out of the Grinding Process. Assume no work-in-process (WIP) inventories.

Answer 1

The total costs transferred out of the Grinding Process for Alpha, Inc. with no work-in-process inventories are $3,800, calculated by adding the direct materials, direct labor, and applied overhead for that process.

Step-by-step explanation:

The student has asked to determine the costs transferred out of the Grinding Process for Alpha, Inc. for the manufacture of Product A, assuming that there are no work-in-process inventories. To find the total costs transferred from the Grinding Process, we sum the direct materials, direct labor, and applied overhead associated with that process.

The costs incurred in the Grinding Process are as follows:

• Direct materials: $2,050
• Direct labor: $1,000
• Applied overhead: $750

To determine the total costs transferred out, we simply add these figures together:

$2,050 (Direct materials) + $1,000 (Direct labor) + $750 (Applied overhead) = $3,800

Therefore, the total costs transferred out of the Grinding Process amount to $3,800.