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 that were completed during the period (round unit cost calculations to whole dollars)?
A) $62,206
B) $16,163
C) $40,000
D) $19,275

Question

Quizplus · Accepted Answer

The total cost of 3,600 units of beginning inventory that were completed during the period is calculated based on the FIFO (First-In, First-Out) method. This method assumes that the oldest inventory items are used first, and thus, the cost associated with these items is used to calculate the cost of goods sold. The specific dollar amount provided in the options suggests that a detailed calculation was performed based on given data, which is not provided in the question. However, the correct answer is identified as $62,206, indicating that this amount represents the total cost of completing the 3,600 units of beginning inventory under the FIFO costing method.

All Direct Materials Are Placed in Process at the Beginning