Prasad 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.
-The total cost transferred from the first processing department to the next processing department during the month is closest to:
A)$449,250
B)$528,560
C)$485,100
D)$473,100

Question

Prasad 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.
-The total cost transferred from the first processing department to the next processing department during the month is closest to:
A)$449,250 
B)$528,560 
C)$485,100 
D)$473,100

Quizplus · Accepted Answer

FIFO method
Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 8,900 - 600 = 8,300
 11eaa48f_7bd7_7e39_9e4a_bde39ffdc455_TB2485_00 
 11eaa48f_7bd7_7e3a_9e4a_f1681886ca39_TB2485_00 
 11eaa48f_7bd7_7e3b_9e4a_6352cedba738_TB2485_00 Note: With no rounding,the answer is $449,250.

Prasad Corporation Uses the FIFO Method in Its Process Costing