Use this information about Penny, Inc. to answer the questions that follow.

Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about the July activities:

-Using the FIFO method, the number of units started and completed in July was
A) 14,250
B) 15,000
C) 13,400
D) 15,740

Question

Use this information about Penny, Inc. to answer the questions that follow.
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Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about the July activities:
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-Using the FIFO method, the number of units started and completed in July was
A) 14,250 
B) 15,000 
C) 13,400 
D) 15,740

Quizplus · Accepted Answer

To determine the number of units started and completed in July using the FIFO method, you would subtract the beginning work-in-process units from the total units accounted for (which includes both units completed and ending work-in-process units) and then add back the ending work-in-process units. Without specific numbers provided in the question, the correct answer is based on an understanding of FIFO (First-In, First-Out) inventory costing method principles. However, given only the choices without the detailed data, the correct answer is selected based on the information typically required to perform such a calculation.

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