Roger Company Uses the FIFO Method in Its Process Costing

question 46

Multiple Choice

Roger Company uses the FIFO method in its process costing system.The following data are taken from the accounting records of a particular department for June:
Beginning work in process inventory:
$$\begin{array} { | l | r | } \hline \text { Cost } & \$ 17,500 \\\hline \text { Units } & 20,000 \text { units } \\\hline \text { Percentnge completion: } & \\\hline \text { Materials } & 100 \%\\\hline \text { Conversion } & 60 \%\\\hline\end{array}$$

Units completed and transferred out: 75,000 units
Cost per equivalent unit:
Material: $1.75
Conversion: $0.50
What is the cost of the 75,000 units transferred out of the department during June?

• A) $151,250.
• B) $145,250.
• C) $131,500.
• D) $168,750.

---

Definitions:

Developed

A state or condition that has achieved significant progress in terms of economic growth, technological advancement, and social welfare.

Active

Engaging or ready to engage in physically energetic pursuits; the opposite of passive.

Directive

A form of guidance or instruction given which aims to influence the conduct or behavior of individuals or groups.

Gestalt Therapist

A practitioner of Gestalt therapy, a form of psychotherapy focusing on the individual's experience in the present moment, the therapist-client relationship, the environmental and social contexts of one's life, and the self-regulating adjustments people make as a result of their overall situation.