FIFO Aluminum Processes a Single Type of Aluminum

question 62

Multiple Choice

FIFO Aluminum processes a single type of aluminum. During the current period the following information was given:

All materials are added at the beginning of the production process. The beginning inventory was 35% complete as to conversion, while the ending inventory was 40% completed for conversion purposes.
FIFO Aluminum uses the first-in, first-out system of process costing.
What were the costs assigned to the units transferred out this period (Round intermediary calculations to the nearest cent) ?

• A) $114,391
• B) $118,203
• C) $246,250
• D) $153,004

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Definitions:

Separately Stated Items

Tax items stated separately on the K-1 form from a partnership or S corporation, allowing for proper reporting and treatment on individual returns.

Ordinary Income

Income earned from standard operations of business or through wages, as opposed to capital gains or dividend income.

Interest Income

Earnings received from various types of investments like savings accounts, CDs, and bonds.

Acctrecv.

Short for "accounts receivable," this term denotes money owed to a company by its customers for goods or services delivered but not yet paid for.