Mickler Productions Uses Process Costing

question 110

Multiple Choice

Mickler Productions uses process costing. Its Mixing Department incurred conversion costs of $650,820 during January, and had a beginning Work in Process inventory of $30,430 for conversion costs. 54,000 units were transferred out of the department, and the ending inventory consisted of 2,500 units that are 20% complete with respect to conversion costs. What is the conversion cost per equivalent unit?

• A) $12.50
• B) $12.05
• C) $12.17
• D) $12.62

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Definitions:

Responsibility

The state or fact of having a duty to deal with something or of having control over someone.

Willing

Displaying readiness or being inclined towards undertaking a specific action or embracing a particular idea.

Ultimate Concern

The fundamental issue or overarching priority that drives an individual's actions or beliefs.

Ownership

The act, state, or right of possessing something, which can refer to tangible property or intangible qualities such as owning one's actions.