Final answer:
The total costs to account for under the FIFO process costing system is calculated by adding the cost of the beginning work in process inventory ($250,000) to the costs incurred during the period ($500,000) and subtracting the cost of the ending work in process inventory ($100,000), resulting in a total of $650,000.
Step-by-step explanation:
To calculate the total costs under the FIFO process costing system, we consider the cost of the beginning work in process inventory, the costs incurred during the period, and the cost of the ending work in process inventory. The beginning work in process inventory is given as $250,000, additional costs incurred amount to $500,000, and the ending work in process inventory costs are $100,000.
Under FIFO (First-In, First-Out), we assume that the earliest costs incurred are the first to be allocated to the products. Therefore, the total costs to account for are the sum of the beginning inventory costs and the costs incurred during the period, minus the cost of the ending work in process inventory. Using these figures:
- Cost of beginning inventory: $250,000
- Costs incurred during the period: $500,000
- Cost of ending inventory: $100,000
The total costs to account for would be calculated as follows:
Beginning Inventory + Costs Incurred - Ending Inventory
$250,000 + $500,000 - $100,000 = $650,000
Therefore, the total costs to account for under the FIFO process costing system would be $650,000.