Severn Company uses the FIFO method in its process costing system.The following data were taken from the accounting records of the company for last month: The cost of the units in the ending Work in Process inventory is:
A)$17,000
B)$20,000
C)$10,000
D)$22,500

Question

Severn Company uses the FIFO method in its process costing system.The following data were taken from the accounting records of the company for last month:  The cost of the units in the ending Work in Process inventory is:
A)$17,000 
B)$20,000 
C)$10,000 
D)$22,500

Quizplus · Accepted Answer

FIFO method
Units started and completed during the period = Units completed during the period - Units in
beginning work in process inventory = 80,000 - 15,000 = 65,000
 11eaa48f_7bd2_26e2_9e4a_1dc180d95e73_TB2485_00 
 11eaa48f_7bd2_26e3_9e4a_415b8e4ef1c5_TB2485_00

Severn Company Uses the FIFO Method in Its Process Costing