Information about units processed and processing costs incurred during a recent month in the Refining Department of a manufacturing company follow: The beginning work in process inventory included $11,000 of conversion cost. During the month, the Department incurred an additional $290,000 in conversion costs. Assuming that the company uses the FIFO method, what is the cost per equivalent unit for conversion costs for the month in the Blending Department to the nearest cent?
A)$2.52
B)$2.55
C)$2.44
D)$2.59

Question

Information about units processed and processing costs incurred during a recent month in the Refining Department of a manufacturing company follow:  The beginning work in process inventory included $11,000 of conversion cost. During the month, the Department incurred an additional $290,000 in conversion costs. Assuming that the company uses the FIFO method, what is the cost per equivalent unit for conversion costs for the month in the Blending Department to the nearest cent?
A)$2.52 
B)$2.55 
C)$2.44 
D)$2.59

Quizplus · Accepted Answer

The Answer of Information about units processed and processing costs incurred during a recent month in the Refining Department of a manufacturing company follow:  The beginning work in process inventory included $11,000 of conversion cost. During the month, the Department incurred an additional $290,000 in conversion costs. Assuming that the company uses the FIFO method, what is the cost per equivalent unit for conversion costs for the month in the Blending Department to the nearest cent?
A)$2.52 
B)$2.55 
C)$2.44 
D)$2.59

Information About Units Processed and Processing Costs Incurred During a Recent