The following information is available for Department Z for the month of July: Work in process, July 1 (70% complete) Direct materials Direct labor Units 2,000 Cost $ 6,000 3,000 Manufacturing overhead 4,000 Total work in process, July 1 $13,000 Started in July 20,000 Costs added: Direct materials Direct labor Manufacturing overhead Total costs added during July Work in process, July 31 (7.5% complete) $18,000 8,000 10,000 $36,000 2,000 Materials are added at the beginning of the process. Department Z's cost of goods transferred out using the FIFO method would be: O a. $44,500. O b. $40,250. Oc. $45,540. Od. $47,056
The following information is available for Department Z for the month of July: Work in process, July 1 (70% complete) Direct materials Direct labor Units 2,000 Cost $ 6,000 3,000 Manufacturing overhead 4,000 Total work in process, July 1 $13,000 Started in July 20,000 Costs added: Direct materials Direct labor Manufacturing overhead Total costs added during July Work in process, July 31 (7.5% complete) $18,000 8,000 10,000 $36,000 2,000 Materials are added at the beginning of the process. Department Z's cost of goods transferred out using the FIFO method would be: O a. $44,500. O b. $40,250. Oc. $45,540. Od. $47,056
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter5: Process Cost Accounting—general Procedures
Section: Chapter Questions
Problem 6E: The records of Burris Inc. reflect the following data: Work in process, beginning of month2,000...
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Question
![The following information is available for Department Z for the month of July:
Work in process, July 1 (70% complete)
Direct materials
Direct labor
Units
2,000
Cost
$ 6,000
3,000
Manufacturing overhead
4,000
Total work in process, July 1
$13,000
Started in July
20,000
Costs added:
Direct materials
Direct labor
Manufacturing overhead
Total costs added during July
Work in process, July 31 (7.5% complete)
$18,000
8,000
10,000
$36,000
2,000
Materials are added at the beginning of the process. Department Z's cost of goods transferred out using the FIFO method
would be:
O a. $44,500.
O b. $40,250.
Oc. $45,540.
Od. $47,056](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdb92c52d-654d-4ee9-9783-d8129c80c302%2Fd43f970d-7d94-4c53-ab35-06743458859d%2Fqf1d7lk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following information is available for Department Z for the month of July:
Work in process, July 1 (70% complete)
Direct materials
Direct labor
Units
2,000
Cost
$ 6,000
3,000
Manufacturing overhead
4,000
Total work in process, July 1
$13,000
Started in July
20,000
Costs added:
Direct materials
Direct labor
Manufacturing overhead
Total costs added during July
Work in process, July 31 (7.5% complete)
$18,000
8,000
10,000
$36,000
2,000
Materials are added at the beginning of the process. Department Z's cost of goods transferred out using the FIFO method
would be:
O a. $44,500.
O b. $40,250.
Oc. $45,540.
Od. $47,056
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