FIFO Aluminum Processes a Single Type of Aluminum

question 66

Multiple Choice

FIFO Aluminum processes a single type of aluminum.During the current period the following information was given:

All materials are added at the beginning of the production process.The beginning inventory was 35% complete as to conversion,while the ending inventory was 40% completed for conversion purposes.
FIFO Aluminum uses the first-in,first-out system of process costing.
What were the costs assigned to the units transferred out this period (Round intermediary calculations to the nearest cent) ?

• A)$114,391
• B)$118,203
• C)$246,250
• D)$153,004

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Definitions:

Accrual

The accounting method that recognizes revenues and expenses when they are incurred, regardless of when cash is exchanged.

Unexpired Insurance

The portion of paid insurance premiums that is applicable to future periods, representing coverage that has not yet been used or expired.

Accrued Asset

An asset that represents revenues or incomes that have been earned but not yet received in cash or recorded.

Fiscal Period

A specific time period for which a business conducts financial accounting and reporting, often a year, split into quarters or months.