Figure 6-11 Champ 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 October follows:
During October, 26,750 units were completed and transferred to the Molding Department.The following costs were incurred by the Mixing Department during October:

-Refer to Figure 6-11.There were 3,750 units that were 80 percent complete remaining in Mixing at October 31.The cost of goods transferred to the Molding Department during October using the FIFO method is

Question

Figure 6-11 Champ 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 October follows:
 During October, 26,750 units were completed and transferred to the Molding Department.The following costs were incurred by the Mixing Department during October:
 
-Refer to Figure 6-11.There were 3,750 units that were 80 percent complete remaining in Mixing at October 31.The cost of goods transferred to the Molding Department during October using the FIFO method is

Quizplus · Accepted Answer

The FIFO method considers only the costs incurred during the current period for the units completed and transferred out. The cost of goods transferred to the Molding Department is calculated based on the costs of completing the beginning inventory and the costs of the units started and completed during the period.