Reid Company Uses a Process Costing System in Which Units

question 55

Multiple Choice

Reid Company uses a process costing system in which units go through several departments. In the Cutting Department for June, units in the beginning work-in-process inventory were 80% complete with respect to conversion costs. Units in the ending work-in-process inventory were 25% complete with respect to conversion costs. Other data for the department for June are as follows:
$\begin{array} { l | r | r | } \hline & \text { Units } & \text { Conversion costs } \\\hline \begin{array} { l } \text { Work in process inventory } \\\text { on June 1 }\end{array} & 15,000 & \$ 50,200 \\\hline \begin{array} { l } \text { Units started into } \\\text { production }\end{array} & 145,000 \\\hline \begin{array} { l } \text { Conversion costs incurred } \\\text { during June }\end{array} & & \$ 175,700 \\\hline \begin{array} { l } \text { Units completed and } \\\text { transferred to the next } \\\text { department during June }\end{array} & 130,000 & \\\hline\end{array}$


- Assuming that the company uses the FIFO cost method,what is the cost per equivalent unit for conversion costs for June,rounded to the nearest cent?

• A) $1.80.
• B) $1.40.
• C) $1.64.
• D) $1.35.

Recognize the significance of empathetic communication in diverse professional settings.

Distinguish between effective and ineffective practices in drafting documents for multiple audiences.

Identify techniques to link product features to audience benefits effectively.

Determine the appropriate use of audience benefits in communication strategies.

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Definitions:

Expensive Process

Implies a process or operation that requires a significant amount of resources, such as time, money, or energy.

Operant Conditioning

A behavioral modification process in which the impact of an act is controlled by the distribution of rewards or the application of penalties.

Adolescents

Individuals in the developmental stage that occurs between childhood and adulthood, typically ranging from ages 13 to 19.

Colored Buttons

This term might refer to buttons (physical or virtual) that are distinguished by different colors, commonly used in interfaces or clothing to provide visual cues or aesthetic appeal.