The debits to Work-in-Process for Department #2 for the month of April of the current year,together with information concerning production,are presented below.
$$\begin{array}{l}
\text { WOFKHNPPROCESS - DEPARTMENT \#2 }\
\begin{array} { | l | r | l | l | }
\hline \begin{array} { l }
1,200 \text { units, } 1 / 4 \
\text { completed }
\end{array} & \$ 1,200 & \begin{array} { l }
\text { Product } X , 6,200 \
\text { units }
\end{array} & ? ? ? ? \
\hline \begin{array} { l }
\text { From Dept. 1, 6,000 } \
\text { units }
\end{array} & 3,600 & & \
\hline \text { Direct Labor } & 8,000 & & \
\hline \text { Factory } \mathrm { OH } & 4,800 & & \
\hline \begin{array} { l }
1,000 \text { units, } 1 / 2 \
\text { complete }
\end{array} & ? ? ? ? & & \
\hline
\end{array}
\end{array}$$
All direct materials come from Department #1.The units completed include the 1,200 in process at the beginning of the period.Department #2 uses FIFO costing.The cost of goods transferred to finished goods is:

Question

The debits to Work-in-Process for Department #2 for the month of April of the current year,together with information concerning production,are presented below.
$$\begin{array}{l}
\text { WOFKHNPPROCESS - DEPARTMENT \#2 }\
\begin{array} { | l | r | l | l | } 
\hline \begin{array} { l } 
1,200 \text { units, } 1 / 4 \
\text { completed }
\end{array} & \$ 1,200 & \begin{array} { l } 
\text { Product } X , 6,200 \
\text { units }
\end{array} & ? ? ? ? \
\hline \begin{array} { l } 
\text { From Dept. 1, 6,000 } \
\text { units }
\end{array} & 3,600 & & \
\hline \text { Direct Labor } & 8,000 & & \
\hline \text { Factory } \mathrm { OH } & 4,800 & & \
\hline \begin{array} { l } 
1,000 \text { units, } 1 / 2 \
\text { complete }
\end{array} & ? ? ? ? & & \
\hline
\end{array}
\end{array}$$
All direct materials come from Department #1.The units completed include the 1,200 in process at the beginning of the period.Department #2 uses FIFO costing.The cost of goods transferred to finished goods is:

Quizplus · Accepted Answer

Using FIFO costing, the cost of goods transferred to finished goods includes the cost of completing the beginning inventory and the cost of units started and completed during the period. The calculation is as follows: - Cost to complete beginning inventory (1,200 units): $1,200 (from WIP) + $3,600 (from Dept. 1) = $4,800- Cost of units started and completed (6,000 units - 1,200 units = 4,800 units): $3,600 (from Dept. 1) + $8,000 (Direct Labor) + $4,800 (Factory OH) = $16,400Total cost = $4,800 + $16,400 = $21,200However, the problem asks for the cost of goods transferred to finished goods, which is the cost of the 6,000 units completed and transferred out. Since the beginning inventory was already partially completed, we only need to add the cost to complete them, not the full cost. Therefore, the cost of goods transferred is $16,000.

The Debits to Work-In-Process for Department #2 for the Month