(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:

Existence Needs

Refers to the basic physiological and safety needs of individuals, such as food, water, shelter, and security.

Growth Needs

Psychological desires that drive individuals to seek challenges, self-improvement, and personal development.

Motivator Factor

Elements of work or conditions that can significantly increase job satisfaction and motivation, as per Herzberg's motivation-hygiene theory.

Herzberg

Refers to Frederick Herzberg, a psychologist known for his Two-Factor Theory of motivation and job satisfaction.