The following is an account for a production department, showing its costs for one month:Work in Process InventoryBeginning Balance5,400Completed and transferred out49,410Direct materials21,600 Direct labor16,200 Overhead10,800 Ending Balance4,590 Assume that materials are added at the beginning of the production process and that direct labor and overhead are applied uniformly. If the started and completed units cost $41,850, what was the cost of completing the units in the beginning Work in Process inventory?
A. $7,560.
B. $12,150.
C. $54,000.
D. $37,260.
E. $2,160.
Answer: E
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