Creer Company uses the FIFO method in its process costing system. Department A
had 20,000 units in process at the beginning of January, which were 40% complete
with respect to conversion costs. All materials are added at the beginning of the
process in Department A. The January 1 work-in-process inventory in Department A
contained $10,000 in materials cost and $11,600 in conversion cost. During January,
materials costs were $0.50 per equivalent unit and conversion costs were $1.50 per
equivalent unit. All of the units in the beginning work-in-process inventory were
completed and transferred out during the month. What was the total cost attached
to these units when they were transferred to the next department?



Answer :

Answer: I would say A.

Step-by-step explanation: