Eban Corporation Uses the FIFO Method in Its Process Costing

question 17

Multiple Choice

Eban Corporation uses the FIFO 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:

Electron Transport Chain

A series of complexes that transfer electrons from electron donors to electron acceptors via redox reactions, and couples this electron transfer with the transfer of protons (H+ ions) across a membrane.

Calvin Cycle

A set of biochemical reactions that take place in the stroma of chloroplasts in photosynthetic organisms, resulting in the conversion of carbon dioxide and other compounds into glucose.

Thylakoid Membrane

Membranous sacs located within the chloroplasts of plants, sites of the light-dependent reactions of photosynthesis.

Carbohydrate Molecules

Organic compounds consisting of carbon, hydrogen, and oxygen atoms, serving as a major energy source and structural component of living organisms.