(Appendix 4A)Index Company Uses the FIFO Method in Its Process

question 55

Multiple Choice

(Appendix 4A) Index Company uses the FIFO method in its process costing system.The first processing department,the Forming Department,started the month with 17,000 units in its beginning work-in-process inventory; the units were 10% complete with respect to conversion costs.The conversion cost in this beginning work-in-process inventory was $9,010.An additional 76,000 units were started into production during the month,and 83,000 units were completed and transferred to the next processing department.There were 10,000 units in the ending work-in-process inventory of the Forming Department; 70% of the units were complete with respect to conversion costs.A total of $445,915 in conversion costs were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for the month on the Forming Department's production report? (Round off to three decimal places.)

• A) $5.050.
• B) $5.300.
• C) $5.867.
• D) $5.150.

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Definitions:

Reduced-Calorie Diet

A dietary plan that involves reducing calorie intake below daily requirements in order to lose weight.

Resting Metabolic Rate

The resting metabolic rate is the amount of energy expended by the body at rest, necessary for maintaining essential physiological functions.

Set Point

A theory suggesting that the body regulates its weight and fat level with internal mechanisms, aiming to maintain a stable weight over time.

Fat Tissue

A type of connective tissue in the body that stores energy in the form of fat and provides insulation and cushioning.