Crimp Corporation Uses the FIFO Method in Its Process Costing

question 29

Multiple Choice

Crimp Corporation uses the FIFO method in its process costing system.Department A had 10,000 units in process at the beginning of January that were 40% 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 $20,000 in materials cost and $11,000 in conversion cost.During January,materials costs were $2.00 per equivalent unit and conversion costs were $2.50 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) $35,000
• B) $31,000
• C) $46,000
• D) $26,000

---

Definitions:

Antiassignment Clauses

Provisions within contracts that prohibit the transfer of rights or delegation of duties to another party without prior consent.

UCC

Stands for the Uniform Commercial Code, a set of laws that provide legal rules and regulations governing commercial or business transactions and agreements in the United States.

Assignment

The act of moving ownership, possessions, or duties from one individual to another.

Bilateral Contract

A contractual agreement involving two parties where each promises to perform an act in exchange for the other's act.