(Appendix 4A)Creer Company Uses the FIFO Method in Its Process

Multiple Choice

(Appendix 4A) Creer Company uses the FIFO method in its process costing system.Department A had 20,000 units in process at the beginning of January,and 40% were 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?

A) $39,600.
B) $33,600.
C) $45,600.
D) $37,600.