Problem: Process Costing Multiple Choice - Oma Inc.
Oma's Inc. uses process costing, FIFO method, to cost its products. The following data isavailable for the month of November.Beginning work in process 3,000 units(75% complete for direct materials and 40%complete for conversion costs)Units completed and transferred to finished goods 14,000 unitsEnding work in process 1,000 units(35% complete for direct materials and 20%complete for conversion costs)Beginning work in process $100,500Consisting of $40,500 for direct materialsand $60,000 for conversion costs.Equivalent unit cost of direct materials for November $20.00Equivalent unit cost of conversion for November $52.501.
Direct material cost incurred during the current period is:(a) $287,000(b) $280,000(c) $300,000(d) $242,000(e) $282,5002.
Conversion cost incurred during the current period is:(a) $735,000(b) $682,500(c) $742,500(d) $787,500(e) $745,5003.
Total cost of goods completed and transferred out is:(a) $907,000(b) $898,000(c) $1,007,500(d) $1,025,000(e) $1,087,500