Mullins Corporation Uses the First-In, First-Out Method in Its Process

question 222

Multiple Choice

Mullins Corporation uses the first-in, first-out method in its process costing system. Data concerning the first processing department for the most recent month are listed below: The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: (Round equivalent units to the nearest whole number and round all other intermediate calculations to 3 decimal places.)

• A) $57,570
• B) $52,950
• C) $99,720
• D) $66,981

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Definitions:

Financing Activities

Transactions and events that affect long-term liabilities and equity of a company, including issuing debt, repaying loans, and distributing dividends.

Fiscal Year

A one-year period used by governments and businesses for accounting and financial reporting, which may or may not align with the calendar year.

Depreciation Expense

Spreading out the expense of a physical asset over the period it's in use.

Operating Activities

Components of a business's cash flow statement that relates to its core operations, including cash received from sales and cash paid for goods and services.