In September, One of the Processing Departments at Becka Corporation

question 37

Multiple Choice

In September, one of the processing departments at Becka Corporation had ending work in process inventory of $23,000. During the month, $362,000 of costs were added to production and the cost of units transferred out from the department was $372,000. The company uses the FIFO method in its process costing system. In the department's cost reconciliation report for September, the total cost accounted for would be:

• A) $56,000
• B) $395,000
• C) $790,000
• D) $757,000

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Definitions:

Coinsurance Clause

A provision in insurance policies requiring the policyholder to bear a portion of the costs of a claim, promoting shared risk.

Fire Damages

Destruction or damage inflicted to property, goods, or assets due to fire.

Insurance Money

Funds received from an insurance company either as a claim settlement or benefit payment.

Short-rate Penalty

A Short-rate Penalty is a fee charged to policyholders who cancel their insurance policy before it expires, calculating the refund using a method that is less favorable than pro-rata.