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:

Salaries Expense

An account that records the total amount paid to employees for services performed during a specific period, excluding wages paid hourly.

Notes Payable

A formal written agreement to pay a specific amount of money on a certain date or upon demand to another party.

Salaries Expense

The total amount paid to employees for services rendered during a specific period, recorded as an expense on the income statement.

Supplies

Materials and items consumed or used in the operation of a business or manufacturing process that are not part of the final product.