(Appendix 4A) Puri Corporation Uses the FIFO Method in Its

question 27

Multiple Choice

(Appendix 4A) Puri Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:
Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.
-The total cost transferred from the first processing department to the next processing department during the month is closest to:

• A) $159,900
• B) $151,800
• C) $174,549
• D) $144,539

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Definitions:

Mean

The arithmetic mean is computed by summing all the numbers in a set and then dividing by the total number of entries in that set.

Standard Deviation

A gauge for the level of deviation or dispersion within a group of quantities.

μ

The symbol used to represent the population mean in statistics.

Frequency Distributions

A statistical tool that organizes data by recording the number of times each value or group of values occurs.