Maccari Corporation Uses the FIFO Method in Its Process Costing

question 34

Multiple Choice

Maccari Corporation uses the FIFO method in its process costing system.Operating data for the Casting Department for the month of September appear below:
According to the company's records,the conversion cost in beginning work in process inventory was $61,824 at the beginning of September.Additional conversion costs of $206,412 were incurred in the department during the month.
The cost per equivalent unit for conversion costs for September is closest to:
(Round off to three decimal places.)

• A) $3.340
• B) $3.220
• C) $3.156
• D) $3.384

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Definitions:

Balance Sheet

A report detailing a corporation's assets, liabilities, and owners' equity at a particular moment.

Comparative Data

Information presented for two or more periods to facilitate quantitative analysis, allowing for trend analysis and benchmarking.

Operating Expenses

Costs incurred during the normal operations of a business, excluding costs related to the production of goods or services.

Direct Method

A cash flow statement preparation approach that lists major categories of gross cash receipts and payments.