Reference no: EM132666856

Gray Manufacturing Company makes pennants for college and university athletic teams. The company uses a process costing system to accumulate product costs as the pennants move through the two stages of production: cutting and silk-screening. All materials are added at the beginning of both cutting and silk-screening processes, while conversion costs are applied even, throughout the process.

• At the beginning ofSeptemher. the Cutting Department had 2,000 pennants in process that were 50% complete. The com pany had incurred $1.300 in direct materials cost and $1,250 in conversion cost to make them. During the month, the department added $13,?08 more of direct materials and $33,418 in conversion costs. A total of 9.150 pennants were ?nished during September and transferred to the Silk-screening Department. At the end of the month, 1.200 pennants that were 40% complete remained in the Cutting Department

Problem 1: How much cost was transferred from the Cutting Department to the Silk-screening Department during September?