Overboard Corporation uses the FIFO 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:

Question

Overboard Corporation uses the FIFO 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:

Quizplus · Accepted Answer

FIFO method
Units started and completed = Units completed during the period - Units in beginning inventory
Units started and completed = 130,000 - 20,000 = 110,000
Units started and completed = Units started into production during the period - Units in ending inventory
110,000 = 150,000 - Units in ending inventory
Units in ending inventory = 150,000 - 110,000 = 40,000
FIFO method equivalent units of production 11ea7998_5e73_5cb4_911b_d9e5650d2b2e_TB2627_00_TB2627_00 FIFO method cost per equivalent unit 11ea7998_5e73_83c5_911b_c1d0f2287e2a_TB2627_00_TB2627_00

Overboard Corporation Uses the FIFO Method in Its Process Costing