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

question 157

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 18,000 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 $52,200. An additional 55,000 units were started into production during the month. There were 16,000 units in the ending work in process inventory of the Welding Department that were 20% complete with respect to conversion costs. A total of $284,160 in conversion costs were incurred in the department during the month.The cost per equivalent unit for conversion costs is closest to:

• A) $5.550
• B) $4.608
• C) $5.800
• D) $5.167

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Definitions:

Moral-Rights View

The perspective that decisions should be based on ethical principles or standards, respecting individuals' rights and welfare.

Ethical Behaviour

The practice of acting in ways consistent with moral principles and values such as honesty, fairness, and integrity.

Honesty

The quality of being truthful, transparent, and free from deceit in one's actions and communications.

Individualism View

Considers ethical behaviour as that which advances long-term self-interests.