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

question 337

Multiple Choice

Eban Corporation uses the first-in, first-out method in its process costing system. The first processing department, the Welding Department, started the month with 24,000 units in its beginning work in process inventory that were 50% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $72,200. An additional 75,000 units were started into production during the month. There were 20,000 units in the ending work in process inventory of the Welding Department that were 20% complete with respect to conversion costs. A total of $324,160 in conversion costs were incurred in the department during the month.The cost per equivalent unit for conversion costs is closest to:

• A) $4.57
• B) $4.41
• C) $5.60
• D) $4.97

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Definitions:

Altruistic Personality

A collection of personality traits, such as empathy, that render some people more helpful than others.

Communal Orientation

The disposition towards valuing relationships and prioritizing communal well-being over individual gain.

Urban Overload Hypothesis

The idea that city dwellers avoid being overwhelmed by stimulation by narrowing their attention, making it more likely that they overlook legitimate situations where help is needed.

Urban Overload Hypothesis

The theory that people living in cities experience overload from the intense stimuli of urban environments, leading to withdrawal and reduced helping behaviors.