(Appendix 4A)Creer Company Uses the FIFO Method in Its Process

question 20

Multiple Choice

(Appendix 4A) Creer Company uses the FIFO method in its process costing system.Department A had 20,000 units in process at the beginning of January,and 40% were complete with respect to conversion costs.All materials are added at the beginning of the process in Department A.The January 1 work-in-process inventory in Department A contained $10,000 in materials cost and $11,600 in conversion cost.During January,materials costs were $0.50 per equivalent unit,and conversion costs were $1.50 per equivalent unit.All of the units in the beginning work-in-process inventory were completed and transferred out during the month.What was the total cost attached to these units when they were transferred to the next department?

• A) $39,600.
• B) $33,600.
• C) $45,600.
• D) $37,600.

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Definitions:

Work Conditions

The environment in which an employee works, including factors such as safety, hours, physical demands, and stress levels.

Trust

The confidence a person or group has in the reliability, integrity, and ability of another, which is fundamental in both personal relationships and organizational dynamics.

Continuous Monitoring

The practice of consistently observing and evaluating a system or process to ensure it operates at desired performance levels over time.

Situational Interviews

Interview technique involving questions about how the applicant would handle hypothetical work-related situations, assessing problem-solving and decision-making skills.