Question

In November, one of the processing departments at Goodsell Corporation had beginning work in process inventory of $36,000 and ending work in process inventory of $35,000. During the month, $427,000 of costs were added to production and the cost of units transferred out from the department was $428,000. The company uses the FIFO method in its process costing system. In the department's cost reconciliation report for November, the total cost to be accounted for would be:__________.a) $890,000b) $71,000c) $463,000d) $926,000

Answer 1

Answer:

c) $463,000

Explanation:

Goodsell Corporation

FIFO Method

Current Costs

Costs Added                  $ 427,000

Add Beginning Work in Process Inventory  $36,000

Total Current Cost                                      $ 463,000

Cost Transferred Out                   $ 428,000

Add Ending Work in Process Inventory  $35,000

Total Current Cost                                      $ 463,000

FIFO assigns the current period costs to the inventories. Current period costs are obtained by adding the costs transferred out and ending inventories costs  or beginning costs and costs added.