Garrison Corporation Uses the FIFO Method in Its Process Costing

question 63

Multiple Choice

Garrison Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:
$\begin{array}{lrr}\text { Beginning work-1n-process inventory: }\\\text { Units in beginning work-in-process inventory } & 600 \\\text { Materials costs } & \$ 6,600 \\\text { Conversion costs } & \$ 2,700 \\\text { Percent complete with respect to materials } & 60 \% \\\text { Percent complete with respect to conversion } & 10 \% \\\text { Units started into production during the month } & 7,000 \\\text { Materials costs added during the month } & \$ 102,200 \\\text { Conversion costs added during the month } & \$ 259,200 \\\text { Ending work-in-process inventory: } & \\\text { Units in ending work-in-process inventory } & 1,500 \\\text { Percent completewith respect to materials } & 55 \% \\\text { Percent complete with respect to conversion } & 10 \%\end{array}$

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The cost per equivalent unit for conversion costs for the first department for the month is closest to: (Round your answer to 2 decimal places.)

• A) $42.49.
• B) $43.96.
• C) $45.00.
• D) $41.87.

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Definitions:

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention; in conditioning, it becomes associated with an unconditioned stimulus.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without prior conditioning.

Internal Attributions

The tendency to explain one's own behavior and the behavior of others based on internal, character-based factors.

Self-Serving Bias

A cognitive bias where individuals attribute their successes to internal factors and their failures to external factors.