Department ABC
the Following Information Is Available for Department ABC

question 94

Multiple Choice

Department ABC
The following information is available for Department ABC for the month of September: $\begin{array}{lll}&\text { Units }&\text { Cost }\\\text { Work-in-Process Inventory, September } 1 \text { ( } 70 \% \text { complete) }&5,000\\\text { Direct materials } & \$ 6,000 \\\text { Direct labour } & & 3,000 \\\text { Manufacturing overhead } && 4,000 \\\\\text { Total Work-in-Process Inventory, September } 1&\$13,000\\\text { Started in production during September }&20,000\\\text { Costs added: }\\\text { Direct materials } & \$ 18,000 \\\text { Direct labour } && 8,000 \\\text { Manufacturing overhead } && 10,000\\\text { Total costs added during September }&&\$36,000\end{array}$ Work-in-Process Inventory, September 30, (80% complete) 2,000
Materials are added at the beginning of the process. (Round unit costs to two decimal places.)
-Refer to Department ABC. What would be the cost of goods transferred out when using the FIFO costing method?

• A) $40,250
• B) $44,500
• C) $45,540
• D) $45,775

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Definitions:

Adolescents

Individuals in the transitional stage of development between childhood and adulthood, typically characterized by major physical, psychological, and social changes.

Adrenal Cortex

The outer layer of the adrenal glands, responsible for producing essential hormones like cortisol, which regulates metabolism and stress response.

Adrenocorticotropic Hormones

Peptide hormones produced by the anterior pituitary gland that stimulate the production of cortisol by the adrenal glands.

Corticosteroids

A class of steroid hormones that reduce inflammation and affect the immune system, used in treating various medical conditions.