Quilling Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places. How many units were started AND completed during the month in the first processing department?
A)7,300
B)8,700
C)8,100
D)6,700

Question

Quilling Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:  Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places. How many units were started AND completed during the month in the first processing department?
A)7,300 
B)8,700 
C)8,100 
D)6,700

Quizplus · Accepted Answer

The units started and completed during the month can be found by looking at the number of units transferred out (7,100) and the number of units in ending WIP inventory (600) and subtracting the number of units in beginning WIP inventory (1,000). Therefore, the calculation is 7,100 + 600 - 1,000 = 6,700. Choice D is the closest answer.

Quilling Corporation Uses the FIFO Method in Its Process Costing