Overboard Corporation uses the first-in, first-out method in its process costing system. In the Cutting Department in June, units were 80% complete with respect to conversion in the beginning work in process inventory and 25% complete with respect to conversion in the ending work in process inventory. Other data for the department for June follow: The cost per equivalent unit for conversion cost is closest to:
A) $1.75
B) $1.51
C) $1.45
D) $1.98

Question

Overboard Corporation uses the first-in, first-out method in its process costing system. In the Cutting Department in June, units were 80% complete with respect to conversion in the beginning work in process inventory and 25% complete with respect to conversion in the ending work in process inventory. Other data for the department for June follow:  The cost per equivalent unit for conversion cost is closest to:
A) $1.75 
B) $1.51 
C) $1.45 
D) $1.98

Quizplus · Accepted Answer

The Answer of Overboard Corporation uses the first-in, first-out method in its process costing system. In the Cutting Department in June, units were 80% complete with respect to conversion in the beginning work in process inventory and 25% complete with respect to conversion in the ending work in process inventory. Other data for the department for June follow:  The cost per equivalent unit for conversion cost is closest to:
A) $1.75 
B) $1.51 
C) $1.45 
D) $1.98

Overboard Corporation Uses the First-In, First-Out Method in Its Process