All direct materials are placed in process at the beginning of production and the first-in,first-out method of inventory costing is used.What is the total cost of 3,600 units of beginning inventory which were completed during the period (round unit cost calculations to four decimal places)?
A) $62,206
B) $16,163
C) $40,000
D) $19,275

Question

Quizplus · Accepted Answer

The total cost of the 3,600 units of beginning inventory that were completed during the period would include all costs associated with those units from the beginning of the production process. Since all direct materials are placed in process at the beginning, and the first-in, first-out (FIFO) inventory costing method is used, the cost assigned to these units would be based on the costs of the materials and any additional processing costs incurred at the start of the period. The specific value of $62,206 suggests it includes all these costs accurately calculated and rounded as per the given instructions.

All Direct Materials Are Placed in Process at the Beginning