Sarfina Corporation Uses the FIFO Method in Its Process Costing

question 24

Multiple Choice

Sarfina Corporation uses the FIFO method in its process costing system. Operating data for the Casting Department for the month of September appear below:
$\begin{array}{ll} &&\text { Percent Complete with Respect }\\ & \text { Units } &\text { to Conversion}\\\text { Beginning work-in-process } & 15,000 &20\%\\\text { inventory } & \\\text { Transferred in from the prior } &\\\text { department } & 89,000 \\\text { during September } & \\\text { Ending work-in-process inventory } & 24,000&90\%\end{array}$

According to the company's records, the conversion cost in beginning work-in-process inventory was $15,660 at the beginning of September. Additional conversion costs of $526,524 were incurred in the department during the month.
What would be the cost per equivalent unit for conversion costs for September? (Round your answer to 3 decimal places.)

• A) $5.916.
• B) $5.340.
• C) $5.220.
• D) $5.213.

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Definitions:

Functional Departmentalization

Organizing a company's structure based on functions or departments such as marketing, finance, human resources, etc., to enhance efficiency and specialization.

Organizational Development

The study and implementation of practices, strategies, and techniques that improve an organization's effectiveness, health, and overall success.

Sociotechnical System Design

An approach to organizational work design that recognizes the interaction between people and technology in workplaces.

Workplace Relationship

Interactions and connections among colleagues within a professional setting, impacting teamwork and collaboration.