Use the following data from a company using a process costing system to answer the question(s) below. The FIFO process costing method is used by the company.
Units completed and transferred out of the department during the month totaled
A) 6,600.
B) 6,400.
C) 6,200.
D) 5,200.

Question

Use the following data from a company using a process costing system to answer the question(s) below.  The FIFO process costing method is used by the company.
Units completed and transferred out of the department during the month totaled
A) 6,600. 
B) 6,400. 
C) 6,200. 
D) 5,200.

Quizplus · Accepted Answer

According to the table provided, the number of units completed and transferred out for the month is calculated by taking the beginning work in process inventory, adding the units started and subtracting the ending work in process inventory. Using the FIFO method, we must assume that units completed come from the oldest beginning work in process inventory first, followed by units started during the current period. Based on this calculation, the units transferred out amount to 6,200 (4,000 + 4,600 - 2,400). Therefore, the best choice is C.

Use the Following Data from a Company Using a Process