Question:

FIFO costing method (managerial accounting ?)?

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Barna Inc Manufactures Potato Chips, their process moves to 3 departments. Materials are always added at the beginning of the month. On Nov.1 in Department A, there were 600 lbs. of potatoes in beginning inventory, during the month 7400 lbs. were added to Department A, and 7700 lbs. were completed and transferred to department B. On Nov. 30 there were 300 lbs. still remaining in Department A process. Compute the equivalent for direct materials for department A for November using FIFO costing method.

Is the answer: a) 7700, b)7400, c) 7800, d)8000

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  1. a) 7700

    beg inv  600 + added 7100 = 7700

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