Tenicheff Corporation Uses the FIFO Method in Its Process Costing

question 13

Multiple Choice

Tenicheff Corporation uses the FIFO method in its process costing system.Operating data for the Curing Department for the month of March appear below: $\begin{array}{lrc}&&\text { Percent Complete with}\\&\text { Units }&\text { Respect to Conversion}\\\text { Beginning work in process inventory.... } & 8,200 & 50 \% \\\text { Transferred in from the prior department } & & \\\text { during March...................................... } & 49,000 \\\text { Completed and transferred to the next}\\\text { department during March.....................}&56,200\\\text { Ending work in process inventory ......... } & 1,000& 40 \%\end{array}$
According to the company's records,the conversion cost in beginning work in process inventory was $10,250 at the beginning of March.The cost per equivalent unit for conversion costs for March was $2.40. How much conversion cost would be assigned to the units completed and transferred out of the department during March?

• A)$134,880
• B)$117,600
• C)$135,290
• D)$125,040

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Definitions:

Quantity Discount

A reduction in price offered by sellers to buyers who purchase large volumes, aimed at incentivizing bulk orders.

Everyday Low Pricing

A pricing strategy where companies consistently offer products at a low price rather than relying on sales or discounts.

Trade-In Allowance

The discount or amount credited to a buyer when they trade in an old item towards the purchase of a new item.

List Price

The manufacturer's suggested retail price (MSRP) of a product, before any discounts, coupons, or negotiations.