Garrison Corporation Uses the FIFO Method in Its Process Costing

question 45

Multiple Choice

Garrison Corporation uses the FIFO method in its process costing system.Data concerning the first processing department for the most recent month are listed below:
$$\begin{array} { | l | r | } \hline \text { Beginning work-in-process inventory: } & \\\hline \text { Units in beginning work-in-process inventory } & 600 \\\hline \text { Materials costs } & \$ 6,600 \\\hline \text { Conversion costs } & \$ 2,700 \\\hline \text { Percent complete with respect to materials } & 60 \% \\\hline \text { Percent complete with respect to corwersion } & 10 \% \\\hline \text { Units started into production during the month } & 7,000 \\\hline \text { Materials costs added during the month } & \$ 102,200 \\\hline \text { Conversion costs added during the month } & \$ 259,200 \\\hline \text { Ending work-in-process imventory: } & \\\hline \text { Units in ending work-in-process irwentory } & 1,500 \\\hline \text { Percent complete with respect to materials } & 55 \% \\\hline \text { Percent complete with respect to corversion } & 10 \% \\\hline\end{array}$$
Note: Your answers may differ from those offered below due to rounding error.In all cases,select the answer that is the closest to the answer you computed.To reduce rounding error,carry out all computations to at least three decimal places.How many units were started AND completed during the month in the first processing department?

• A) 6,100.
• B) 5,500.
• C) 7,600.
• D) 7,000.

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Definitions:

Quantity Flexibility Contract

An agreement between a buyer and a supplier that allows the buyer to adjust order quantities based on actual demand within certain limits.

Revenue-sharing Contract

A type of agreement where the profits generated by a business or project are distributed among the partners or investors based on a predetermined formula.

Minimal Amount

The least or smallest quantity or degree attainable or required in a specific context.

Design Phase

represents the initial stage in the development of a product or system, focused on determining specifications, features, and functionalities.