Severn Company Uses the FIFO Method in Its Process Costing

question 3

Multiple Choice

Severn Company uses the FIFO method in its process costing system.The following data were taken from the accounting records of the company for last month: The cost of the units in the ending Work in Process inventory is:

• A)$17,000
• B)$20,000
• C)$10,000
• D)$22,500

---

Definitions:

Relationship

A connection, association, or involvement between two or more individuals, groups, or entities.

Negative Correlation

A relationship between two variables in which one variable increases as the other decreases, and vice versa.

Average Income

A measure of the middle income value for individuals or households within a specific group or country.

Dental Disease

Conditions affecting the teeth, gums, and other structures of the mouth, including cavities, gum disease, and oral cancer.