Ibarra Corporation Uses the First-In, First-Out Method in Its Process

question 74

Multiple Choice

Ibarra Corporation uses the first-in, first-out method in its process costing system. The first processing department, the Forming Department, started the month with 16,000 units in its beginning work in process inventory that were 20% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $19,250. An additional 97,000 units were started into production during the month and 100,000 units were completed and transferred to the next processing department. There were 13,000 units in the ending work in process inventory of the Forming Department that were 30% complete with respect to conversion costs. A total of $593,123 in conversion costs were incurred in the department during the month. The cost per equivalent unit for conversion costs for the month is closest to:

• A) $6.100
• B) $5.890
• C) $5.422
• D) $6.115

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Definitions:

Quantity Supplied

The total amount of a product that producers are willing and able to sell at a given price over a specific period.

Quantity of Cameras

The total number of cameras produced, held in inventory, or sold in a given period.

Demand for Film

Demand for film encompasses the desire and willingness of consumers to purchase and view cinematic productions, influenced by factors such as genre, cast, and reviews.

Price of Cameras

The amount of money required to purchase a camera, influenced by factors such as technology, brand, market demand, and production costs.