Tori Company Uses the FIFO Method in Its Process Costing

question 136

Multiple Choice

Tori Company uses the FIFO method in its process costing system. The first processing department, the Soldering Department, started the month with 17,000 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 $101,150. An additional 68,000 units were started into production during the month. There were 23,000 units in the ending work-in-process inventory of the Soldering Department that were 80% complete with respect to conversion costs. A total of $565,125 in conversion costs were incurred in the department during the month.
What would be the cost per equivalent unit for conversion costs? (Round your answer to 3 decimal places.)

• A) $8.500.
• B) $8.311.
• C) $8.250.
• D) $7.839.

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Definitions:

Evaluating Duties

The process of assessing and analyzing job responsibilities to ensure they align with organizational goals and employee capabilities.

Job Enlargement

Increasing the variety of tasks assigned to a job to reduce monotony and improve employee satisfaction and performance.

Task Variety

The degree to which a job involves different activities and skills to complete the work, helping to keep employees motivated and engaged.

Job Design

The arrangement of work tasks for individuals and groups.