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:
$\begin{array}{lrr}\text { Beginning work-1n-process inventory: }\\\text { Units in beginning work-in-process inventory } & 600 \\\text { Materials costs } & \$ 6,600 \\\text { Conversion costs } & \$ 2,700 \\\text { Percent complete with respect to materials } & 60 \% \\\text { Percent complete with respect to conversion } & 10 \% \\\text { Units started into production during the month } & 7,000 \\\text { Materials costs added during the month } & \$ 102,200 \\\text { Conversion costs added during the month } & \$ 259,200 \\\text { Ending work-in-process inventory: } & \\\text { Units in ending work-in-process inventory } & 1,500 \\\text { Percent completewith respect to materials } & 55 \% \\\text { Percent complete with respect to conversion } & 10 \%\end{array}$

-
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.

---

Definitions:

Intellectual Disability

A disability characterized by significant limitations in both intellectual functioning and in adaptive behavior, which covers a range of everyday social and practical skills.

Mental Retardation

An outdated and insensitive term formally used to describe people with significantly below-average intellectual functioning and adaptive behaviors, now more appropriately called intellectual disability.

Elementary Education

The first stage of formal education, covering basic reading, writing, arithmetic, and social skills typically provided to young children.

Dyslexia

A learning disorder characterized by difficulties with accurate and/or fluent word recognition, poor spelling and decoding abilities, often due to a deficit in the phonological component of language.