Rawlings, Inc. manufactures a product that passes through two processes: mixing and molding. All manufacturing costs are added uniformly in the Mixing Department. Information for the Mixing Department for January follows: $\begin{array}{lr}
\text { Work in process, January } 1: & \
\text { Units (35\% complete) } & 7,500 \
\text { Direct materials } & \$ 36,000 \
\text { Direct labor } & \$ 45,000 \
\text { Overhead } & \$ 15,000
\end{array}$ During January, 26,750 units were completed and transferred to the Molding Department. The following costs were incurred by the Mixing Department during January: $\begin{array}{lr}
\text { Direct materials } & \$ 133,050 \
\text { Direct labor } & 180,000 \
\text { Overhead (applied) } & 45,000
\end{array}$
The cost of January's ending work in process for the Mixing Department using the FIFO method is
A)$26,250.
B)$50,400.
C)$63,000.
D)none of the above.

Question

Quizplus · Accepted Answer

The FIFO method calculates the cost of the ending work in process by considering only the costs added during the current period to the units that were not completed by the end of the period. The information provided does not include enough details (such as the number of units in process at the end of January and their degree of completion) to accurately calculate the ending work in process cost for the Mixing Department. Therefore, without additional information, the correct answer cannot be determined from the options provided.

Rawlings, Inc During January, 26,750 Units Were Completed and Transferred to the Mixing