Mash Company Uses Process Costing

question 27

Multiple Choice

Mash Company uses process costing. During March, its Varnishing Department incurred costs of $63,250 for conversion. The beginning inventory was 1,500 units and 9,700 units were transferred to the Varnishing Department from the Sanding Department during March. The Varnishing Department's conversion costs in beginning inventory totaled $5,554. The ending inventory consisted of 1,200 units that were 25% complete with respect to conversion costs. Materials are added at the beginning of the process. What is the cost per equivalent unit for conversion costs?

• A) $6.14
• B) $6.88
• C) $5.42
• D) $6.38

---

Definitions:

Federal Tax

Taxes imposed by the federal government on income, property, and goods and services, used to fund public services and government operations.

Public Policy

Public Policy refers to the system of laws, regulatory measures, courses of action, and funding priorities concerning a given topic promulgated by a governmental entity or its representatives.

Pollution

The presence or introduction into the environment of contaminants or substances that cause harm or discomfort to organisms.

Private Enterprise

Business operations that are owned, financed, and managed by private individuals rather than the government.