In October, One of the Processing Departments at Ridling Corporation

question 78

Multiple Choice

In October, one of the processing departments at Ridling Corporation had ending work in process inventory of $39,000. During the month, $252,000 of costs were added to production and the cost of units transferred out from the department was $235,000. The company uses the FIFO method in its process costing system. In the department's cost reconciliation report for October, the total cost to be accounted for would be:

• A)$526,000
• B)$61,000
• C)$548,000
• D)$274,000

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Definitions:

Royalties

Payments made by one party (the licensee) to another (the licensor) for the right to use a particular property, typically intellectual property.

Foreign Subsidiary

A company that is owned or controlled by another company but is located in a country different from the parent company.

Management Fees

Fees paid for the professional management of assets or investment funds.

Foreign Subsidiary

A company that is partially or wholly owned by another company (parent company) but is based in a different country.