Simpson Company Simpson Company Adds Material at the Start of Production

question 92

Multiple Choice

Simpson Company Simpson Company adds material at the start of production. The following production information is available for September:
Refer to Simpson Company. What is the cost of all units transferred out using the FIFO method?

• A) $204,624
• B) $191,289
• C) $287,004
• D) $298,029

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Definitions:

Expense Account

An income statement account that represents the cost of goods sold, operating expenses, and non-operating expenses.

Income Statement

A financial report that shows the revenues, expenses, and profit or loss of a company over a specific accounting period.

Debit Total

The sum of all debit entries made in an account or in the general ledger.

Credit Total

The sum of all credits entered into an accounting system during a specific period.