Using the FIFO method,the total cost of units in ending work in process is ?( Round the per unit value to the nearest cent and do not round other intermediate calculations )
A) $104,000.
B) $128,000.
C) $153,000.
D) $164,883.

Question

Quizplus · Accepted Answer

To determine the total cost of units in ending work in process using the FIFO method, we need to find the cost of the units that were added to the work in process inventory last.

Using the FIFO method, we assume that the units that were added last are also the units that were purchased or produced last. Therefore, we need to look at the cost of these units to calculate the total cost of units in ending work in process.

The cost of the units that were added last can be calculated as follows:

40,000 units x $4.00 per unit = $160,000

However, we only need to account for the inventory that was partially completed, which is 25% of the 40,000 units, or 10,000 units.

10,000 units x $4.00 per unit = $40,000

Therefore, the total cost of units in ending work in process is $40,000.

Using the FIFO Method,the Total Cost of Units in Ending