Tori Company uses the FIFO method in its process costing system. The first proce

Question

Tori Company uses the FIFO method in its process costing system. The first processing department, the Soldering Department, started the month with 34,000 units in its beginning work-in-process inventory that were 70% complete with respect to conversion costs. The conversion cost in this beginning work-in-process inventory was $118,150. An additional 86,700 units were started into production during the month. There were 40,000 units in the ending work-in-process inventory of the Soldering Department that were 80% complete with respect to conversion costs. A total of $582,125 in conversion costs were incurred in the department during the month.
What would be the cost per equivalent unit for conversion costs? (Round off to three decimal places.)

$6.933.

$6.714.

$6.548.

$5.982.

Explanation / Answer

Conversion cost per equivalent unit = 582125/88900 = $6.548

Statement of equivalent units of production Conversion cost % Units Equiv Units Beg. Work in process inventory 30 34000 10200 (34000*30%) started and completed 100 46700 46700 End work in process inventory 80 40000 32000 (40000*80%) 120700 88900

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.