Bentwood Corporation Uses the FIFO Method in Its Process Costing

question 119

Multiple Choice

Bentwood Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:

$\begin{array}{lrr}\text { Beginning work-1n-process inventory: }\\\text { Units in beginning work-in-process inventory } & 900 \\\text { Materials costs } & \$ 17,100 \\\text { Conversion costs } & \$ 10,200 \\\text { Percent complete with respect to materials } & 70 \% \\\text { Percent complete with respect to conversion } & 25 \% \\\text { Units started into production during the month } & 7,300 \\\text { Units transferred to the next department during the month }& 6,100 \\\text { Materials costs added during the month } & \$ 148,200 \\\text { Conversion costs added during the month }&\$247,500 \\\text { Ending work-in-process inventory: } & \\\text { Units in ending work-in-process inventory } & 2,100 \\\text { Percent completewith respect to materials } & 80 \% \\\text { Percent complete with respect to conversion } & 35 \%\end{array}$

-
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) $40.57.
• B) $45.33.
• C) $39.31.
• D) $37.44.

---

Definitions:

Employment

The condition of having a paid job; the total number of people currently employed in the economy.

Interest Rate Effect

The impact that changes in the interest rate have on consumer spending and investment due to the cost of borrowing money.

Real Wealth Effect

The change in consumption levels caused by a change in purchasing power, often due to inflation or deflation.

Aggregate Demand Curve

The Aggregate Demand Curve represents the total quantity of all goods and services demanded by the economy at different price levels.