Reference: 04-12
GK Manufacturing Had Inventory at May 1 of 5,000

question 67

Multiple Choice

Reference: 04-12
GK Manufacturing had inventory at May 1 of 5,000 units which were 70% complete as to conversion costs. The
May 1 inventory had total costs of $ 69,900 which included $ 21,500 direct materials, $ 38,775 direct labour and
$ 9,625 factory overhead.
Costs added to work in process in May were as follows: $$\begin{array} { | l | l | } \hline \text { Direct materials } & \$ 298,800 \\\hline \text { Direct labour } & \$ 540,800 \\\hline \text { Factory overhead } & \$ 135,400 \\\hline\end{array}$$ During May, 49,200 units were completed, including those in inventory on May 1. On May 30, the inventory of work in process consisted of 5,600 units which were 3/8 completed as to conversion costs. Inventories are costed by the first-in, first-out method and all materials are added at the beginning of the process.
-What was the conversion cost per equivalent unit for May

• A)$21.86.
• B)$12.81.
• C)$14.15.
• D)$15.18.

---

Definitions:

Physical Events

Occurrences that involve changes or activities in the tangible, physical world.

Katherine Nelson

An influential cognitive psychologist known for her research on language development and the role of narratives in children's learning.

Scripted Routines

Pre-established sequences of actions or behaviors that individuals follow in specific situations.

Innate Capabilities

Refers to abilities or skills that an individual is born with, suggesting a natural predisposition that is not learned or acquired.