Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Information about July's activities is as follows:
-Using the FIFO method and rounding cost per unit to four decimal places, the cost of goods completed and transferred out during July was
A)$227,270
B)$225,060
C)$236,905
D)$228,200

Question

Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Information about July's activities is as follows:  ​
-Using the FIFO method and rounding cost per unit to four decimal places, the cost of goods completed and transferred out during July was
A)$227,270 
B)$225,060 
C)$236,905 
D)$228,200

Quizplus · Accepted Answer

The FIFO (First-In, First-Out) method assumes that the first units produced or purchased are the first ones to be sold or used. The cost of goods completed and transferred out is calculated based on the costs of the earliest units in inventory. Without specific data on the units produced, their costs, and the units sold or transferred, it's impossible to provide a detailed calculation. However, the correct answer is based on applying the FIFO method to the provided data, which is not visible in this format.