In May, One of the Processing Departments at Messerli Corporation

question 166

Multiple Choice

In May, one of the processing departments at Messerli Corporation had beginning work in process inventory of $18,000 and ending work in process inventory of $39,000. During the month, $152,000 of costs were added to production and the cost of units transferred out from the department was $131,000. The company uses the first-in, first-out method in its process costing system. In the department's cost reconciliation report for May, the total cost to be accounted for would be:

• A) $170,000
• B) $340,000
• C) $57,000
• D) $322,000

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Definitions:

Performance Appraisal Method

A systematic evaluation process by which an employee's job performance is documented and evaluated, often to determine the need for training or future promotion.

Rank Ordering

The process of organizing items or individuals based on their performance, preference, or priority in a hierarchical list.

Base Compensation

The initial rate of pay provided to an employee, not including additional benefits, bonuses, or incentives.

Fringe Benefits Programs

Packages offered by employers outside of regular salaries, including health insurance, retirement plans, and other perks.