Que Corporation Uses the FIFO Method in Its Process Costing

question 37

Multiple Choice

Que Corporation uses the FIFO method in its process costing system.Operating data for the Cutting Department for the month of March appear below:
According to the company's records,the conversion cost in beginning work in process inventory was $3,705 at the beginning of March.Additional conversion costs of $210,213 were incurred in the department during the month.
The cost per equivalent unit for conversion costs for March is closest to:

• A) $3.686
• B) $1.677
• C) $1.756
• D) $1.840

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Definitions:

Slope

In mathematics and economics, the measure of the steepness or incline of a line, often interpreted as the rate of change of one variable with respect to another.

Default Risk

The risk that a borrower will not make the required payments on their debt obligations, leading to potential losses for lenders or investors.

Risk-Free Rate

The theoretical rate of return on an investment with zero risk, often represented by the yield on government securities.

Inflation Premium

The additional amount investors require on the return of an investment to compensate for the loss of purchasing power due to inflation.