Question

Krumbly Companyuses the FIFO methodin its process costing system. At the beginning of the month, Department D's work in process inventory contained 2,000 units. These units were fully complete with respect to materials and 40% complete with respect to conversion costs, with a total cost at that point of $3,600. During the month, conversion costs amounted to $8 per equivalent unit.
If all 2,000 units are fully complete by the end of the month, their total costby that time will be:

A)$19,600

B)$10,000

C)$13,200

D)$9,000

Answer 1

Answer:

C) $13,200

Explanation:

Cost from beginning inventory...................................$ 3,600

Cost to finish beginning inventory: (1 − 40%) = 60% × 2,000

= 1,200 EU × $8 cost per EU......................................... 9,600

Total cost of units from beginning inventory..........$13,200

If all 2,000 units are fully complete by the end of the month, their total costby that time will be .$13,200 .