The Debits to Work-In-Process for Department #2 for the Month

question 77

Multiple Choice

The debits to Work-in-Process for Department #2 for the month of April of the current year,together with information concerning production,are presented below.
$$\begin{array}{l}\text { WOFKHNPPROCESS - DEPARTMENT \#2 }\\\begin{array} { | l | r | l | l | } \hline \begin{array} { l } 1,200 \text { units, } 1 / 4 \\\text { completed }\end{array} & \$ 1,200 & \begin{array} { l } \text { Product } X , 6,200 \\\text { units }\end{array} & ? ? ? ? \\\hline \begin{array} { l } \text { From Dept. 1, 6,000 } \\\text { units }\end{array} & 3,600 & & \\\hline \text { Direct Labor } & 8,000 & & \\\hline \text { Factory } \mathrm { OH } & 4,800 & & \\\hline \begin{array} { l } 1,000 \text { units, } 1 / 2 \\\text { complete }\end{array} & ? ? ? ? & & \\\hline\end{array}\end{array}$$
All direct materials come from Department #1.The units completed include the 1,200 in process at the beginning of the period.Department #2 uses FIFO costing.What are the total costs to be accounted for on the production cost report for Department #2 for the period?

• A) $16,400.
• B) $17,600.
• C) $11,600.
• D) $12,660.

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Definitions:

Just-in-time System

A production strategy that strives to improve a business's return on investment by reducing in-process inventory and associated carrying costs, delivering materials just as they are needed in the production process.

Responsibility

A duty or obligation to perform or refrain from performing certain actions, often associated with a specific role or position.

Carrying Inventory

The total value of inventory a company holds at a given time, including goods ready for sale and raw materials.