(Appendix 6A)Roger Company Uses the FIFO Method in Its Process

question 42

Multiple Choice

(Appendix 6A) 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:
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.Cost of units transferred out then = $17,500 + 8,000 * $0.50 + 55,000 * $2.25 = $145,250

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Definitions:

Title

The legal right to own, use, or sell property or assets; also refers to the formal document proving such a right.

Implied Condition

A term or stipulation in a contract that is not expressly stated but is assumed to exist due to the nature of the agreement or the parties' intentions.

Sale of Goods Act

A set of legal regulations governing the sale of goods, ensuring rights, and obligations between buyer and seller are clearly defined.

Breached a Warranty

The act of violating a promise or guarantee made about the condition or functionality of a product or service.