Answer:
The cost of the units completed and transferred out is C. $138,300
Explanation:
FIFO method means that the units that were incomplete at the beginning of the period <em>are the first to be completed</em> followed by those started during the year.
The cost of of units completed and transferred is calculated as follows :
Cost in Opening Work In Process $31,000
Cost to Finish Opening Work In Process :
Raw Materials ( $1.30 × 0) $0
Conversion ($2.20 × (15,000 × 60%)) $19,800
Started and Completed ((40,000 - 15,000) × ($1.30 + $2.20)) $87,500
Total Cost of of units completed and transferred $138,300
Conclusion :
The cost of the units completed and transferred out is $138,300.
