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The Cutting Department of the Rock Island Custom Cabinetry Corporation (a process costing production) had no work in process at the beginning of the period, 12,000 units were completed during the period, 1,000 units were 40% completed at the end of the period, and the following manufacturing costs were debited to the Work in Process-Cutting Department during the period:Direct materials (13,000 lbs. at $6.00/lb.) $78,000Direct Labor 105,000Factory Overhead 78,0001. Assuming all direct materials are placed in process at the beginning of production, what is the total cost of the Work in Process-Cutting Department inventory at the end of the period?a. $6,400b. $8,400c. $10,000d. $4,000e. $11,0002. Assuming that all direct materials are placed in process at the beginning of production, what is the total cost of the 12,000 units completed in the Cutting Department during the period?a. $120,000b. $186,462c. $192,000d. $78,000e. $110,000
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