Career Company uses the FIFO method in its process costing system. Department A had 20,000 units in process at the beginning of January, that were 40% complete with respect to conversion costs. All materials are added at the beginning of the process in Department A. The January 1 work in process inventory in Department A contained P10,000 in materials cost and P11,600 in conversion cost. During January, materials costs were P0.50 per equivalent unit and conversion costs were P1.60 per equivalent unit. All of the units in the beginning work in process inventory were completed and transferred out during the month. What was the total cost attached to these units when they were transferred to the next department? A. 39,600 b. 45,600 c. 40,800
Career Company uses the FIFO method in its
A. 39,600
b. 45,600
c. 40,800
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
