Which of the Following Is Used to Calculate the Number

question 9

Multiple Choice

Which of the following is used to calculate the number of units accounted for under first-in,first-out (FIFO) method of inventory valuation of process costing?

• A) Accounted for = Beginning balance + Started and completed + In process
• B) Accounted for = Beginning balance + Started and completed
• C) Accounted for = Beginning balance + In process
• D) Accounted for = Beginning balance + Amount transferred in

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Definitions:

Cost of Goods Manufactured

The total production cost of goods completed during a specific period, including direct materials, direct labor, and manufacturing overhead.

Direct Materials

Raw materials that are directly used in the production of goods, traceable to the end product.

Factory Overhead

All the indirect costs related to manufacturing, which are not directly tied to the production of goods, such as utilities and rent for the manufacturing facility.

Direct Labor

The labor costs directly associated with the production of goods or the provision of services, typically including wages paid to workers who physically manufacture products.