Cherrington Company Uses a Process Costing System

question 57

Multiple Choice

Cherrington Company uses a process costing system. For May, the month just completed, the beginning work in process inventory consisted of 50,000 units which were 60% complete with respect to conversion costs. The ending inventory for the month was 20% complete with respect to conversion costs. A summary of cost data for the month follows:



-Using the FIFO method, the total cost of units in the ending work in process inventory is closest to:

• A) $153,200
• B) $154,800
• C) $155,300
• D) $157,000

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