Morvan Corporation uses the FIFO method in its process costing system. Data conc

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:

Beginning work in process inventory: <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /?>

Units in beginning work in process inventory .....200

Materials cost...... 4.500

Conversion cost ...... 6,500

Percent complete with respect to materials........80%

Percent complete with respect to ocnversion.....75%

Units started into production during the month......8,000

Units transferred to the next department during the month......8,500

Materials cost added during the month ......241,400

Conversion cost added during the month.........362,000

Ending work in process inventory:

Units in ending work in process inventory ......500

Percent complete with respect to materials ........75%

Percent complete with respect to conversion......30%

EXPLAIN IMAGE ATTACHED A.$603,400 B.$597,619 C.$632,583 D.$614,400

Explanation / Answer

A.$603,400 FIFO first in will be first out

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