Tepla Corporation uses the FIFO method in its process costing system.Operating data for the Curing Department for the month of March appear below: According to the company's records,the conversion cost in beginning work in process inventory was $40,608 at the beginning of March.The cost per equivalent unit for conversion costs for March was $9.30. How much conversion cost would be assigned to the units completed and transferred out of the department during March?
A)$562,152
B)$561,720
C)$520,800
D)$521,544

Question

Tepla Corporation uses the FIFO method in its process costing system.Operating data for the Curing Department for the month of March appear below:   According to the company's records,the conversion cost in beginning work in process inventory was $40,608 at the beginning of March.The cost per equivalent unit for conversion costs for March was $9.30. How much conversion cost would be assigned to the units completed and transferred out of the department during March?
A)$562,152 
B)$561,720 
C)$520,800 
D)$521,544

Quizplus · Accepted Answer

FIFO method
Units started and completed during the period = Units started into production during the period - Units in ending work in process inventory = 56,000 - 1,000 = 55,000
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 11eaa48f_7bd2_7506_9e4a_6fa3456d4a3d_TB2485_00

Tepla Corporation Uses the FIFO Method in Its Process Costing