Qart Company Uses the FIFO Method in Its Process Costing

question 43

Multiple Choice

Qart Company uses the FIFO method in its process costing system.Operating data for the Cutting Department for the month of March appear below:
$\begin{array}{|l|r|r|}\hline & \text { Units } & \text { Percentage complete } \\\hline \begin{array}{l}\text { Beginning work in process } \\\text { inventory }\end{array} & 4,500 & 20\%\\\hline \begin{array}{l}\text { Transferred in from the } \\\text { prior department during }\end{array} & 74,00 & \\\text { March }\\\hline \begin{array}{l}\text { Completed and transferred } \\\text { to the next department } \\\text { during March }\end{array} & 74,500 & \\\hline \text { Ending work in process } & 4,000 & 60 \% \\\text { inventory } & & \\\hline\end{array}$

According to the company's records,the conversion cost in beginning work-in-process inventory was $1,656 at the beginning of March.Additional conversion costs of $129,960 were incurred in the department during the month.
What would be the cost per equivalent unit for conversion costs for March on the Cutting Department's production report? (Round off to three decimal places.)

• A) $1.710.
• B) $1.677.
• C) $1.756.
• D) $1.840.

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Definitions:

Carbohydrates

Essential nutrients found in sugars, starches, and fibers that provide energy to the body’s cells, tissues, and organs.

Calorie

A unit used to measure the amount of energy food produces; the amount of energy needed to raise the temperature of 1 kg of water by 1°C.

Calories

Units of energy that measure the amount of energy food provides to the body.

Fat

A macronutrient that is a major source of energy for the body and aids in the absorption of vitamins.