Mash Company Uses Process Costing

question 29

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 $5,550.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 during March?

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

---

Definitions:

Fiberglass

A material consisting of extremely fine glass fibers, used in various applications including insulation and reinforcement.

Plaster

A soft mixture of lime with sand or cement and water for spreading on walls, ceilings, or other structures to form a smooth hard surface when dried.

Dressing

A sterile material used to cover a surgical or other wound.

Diabetic Coma

A life-threatening emergency arising from uncontrolled diabetes, characterized by extreme hyperglycemia or hypoglycemia.