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Marlow Corporation Uses the FIFO Method in Its Process Costing

Question 26

Multiple Choice

Marlow Corporation uses the FIFO method in its process costing system.Department A's beginning work in process inventory consisted of 12,000 units,100% complete with respect to materials and 60% complete with respect to conversion costs.The total cost of this inventory was $76,400.A total of 25,000 units were transferred out during the month.The costs per equivalent unit were computed to be $3.40 for materials and $4.70 for conversion costs.The cost of the units completed and transferred out was closest to:


A) $195,540
B) $146,100
C) $202,500
D) $204,260

Correct Answer:

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