Penny, Inc. employs a process costing system. Direct materials are added at the beginning of...
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Accounting
Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Information about Julys activities is as follows:
| On July 1: | |
| Beginning inventories | 850 units, 60% complete |
| Direct materials cost | $5,000 |
| Conversion costs | $4,000 |
| During July: | |
| Number of units started | 15,000 |
| Direct materials added | $155,000 |
| Conversion costs added | $83,520 |
| On July 31: | |
| Ending inventories | 1,600 units, 40% complete |
Using the FIFO method and rounding cost per unit to four decimal places, the cost of goods completed and transferred out during July was
a. $227,270
b. $225,060
c. $236,905
d. $228,200
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