Morvan 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.
-The total cost transferred from the first processing department to the next processing department during the month is closest to:
A)$603,400
B)$597,619
C)$632,583
D)$614,400

Question

Morvan 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.
-The total cost transferred from the first processing department to the next processing department during the month is closest to:
A)$603,400 
B)$597,619 
C)$632,583 
D)$614,400

Quizplus · Accepted Answer

FIFO method
Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 8,500 - 200 = 8,300
 11eaa48f_7bd6_6cc0_9e4a_d981d2645536_TB2485_00 
 11eaa48f_7bd6_93d1_9e4a_093ac8027349_TB2485_00 
 11eaa48f_7bd6_93d2_9e4a_01238fae89dd_TB2485_00 Note: The answer without any rounding error is $597,619.

Morvan Corporation Uses the FIFO Method in Its Process Costing