Kirkpatrick Company Uses a Process-Cost System with the FIFO Method

question 43

Multiple Choice

Kirkpatrick Company uses a process-cost system with the FIFO method of accounting for beginning inventories. Materials are added at the beginning of the process, and conversion costs are incurred uniformly. Work-in-process at the beginning is assumed to be 40 percent complete and at the end to be 70 percent complete. Additional data follow:

-The total cost of the units still in process is

• A) $52,080.
• B) $58,800.
• C) $41,160.
• D) $49,160.

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Definitions:

Axial TIR

Tolerance of radial run-out in a rotating component, measured along the axis.

Hydraulic Brake Rotor

A critical component in hydraulic braking systems, the rotor is a disc that brake pads press against to create friction and slow down the vehicle.

Servo-type Hydraulic Drum Brake

A braking system which combines hydraulic pressure and mechanical servo action to increase braking efficiency, often found in vehicles.