(Appendix 4A) The following information relates to the Cutting Department of Kittina Corporation for the month of February. Kittina uses a FIFO process costing system. All materials at Kittina are added at the beginning of the production process.
On February 1, the work in process inventory account contained $55,620 of material cost and $123,120 of conversion cost. Cost per equivalent unit for February was $3.10 for materials and $7.50 for conversion costs.
-What total amount of cost should be assigned to the units completed and transferred out during February?
A) $1,743,300
B) $1,812,600
C) $1,814,040
D) $1,922,040

Question

(Appendix 4A) The following information relates to the Cutting Department of Kittina Corporation for the month of February. Kittina uses a FIFO process costing system. All materials at Kittina are added at the beginning of the production process.
  On February 1, the work in process inventory account contained $55,620 of material cost and $123,120 of conversion cost. Cost per equivalent unit for February was $3.10 for materials and $7.50 for conversion costs.
-What total amount of cost should be assigned to the units completed and transferred out during February?
A) $1,743,300 
B) $1,812,600 
C) $1,814,040 
D) $1,922,040

Quizplus · Accepted Answer

FIFO method
Units started and completed = Units started into production during the period - Units in ending inventory
= 160,000 - 7,000 = 153,000
 11ea7761_18cd_6bda_81a5_d1633ac14c68_TB2580_00 11ea7761_18cd_6bdb_81a5_39cfb06b5a35_TB2580_00

(Appendix 4A) the Following Information Relates to the Cutting Department