(Appendix 4A) Normand Corporation Uses the FIFO Method in Its

question 36

Multiple Choice

(Appendix 4A) Normand Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:
Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.
-The cost per equivalent unit for conversion costs for the first department for the month is closest to:

• A) $45.66
• B) $52.86
• C) $47.94
• D) $48.14

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Definitions:

Standard of Reasonable Care

A legal benchmark requiring that an individual or organization act with the same level of judgement and diligence as a prudent person would in similar circumstances.

Ordinary Person

An average or typical individual without specialist knowledge or exceptional characteristics.

Negligence

The failure to exercise the care that a reasonably prudent person would in similar circumstances, often leading to harm or damage.

Intended to Harm

Actions or behaviors designed with the purpose of causing physical or emotional injury to others.