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

question 24

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.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. The unit cost of Product X started in the prior period and completed in the current period is:

• A)$2.00.
• B)$3.60.
• C)$2.55.
• D)$3.45.

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Definitions:

Possible Courses

A range of potential directions or actions that can be taken in a specific situation.

Incremental Analysis

The process of comparing the expected costs and benefits of alternative decisions, focusing on the differences between them.

Net Income

The profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Unprofitable Segment

A division or part of a company that does not generate profit and may result in a financial loss for the company.