(Appendix 6A)Marten Company Uses the FIFO Method in Its Process

question 7

Multiple Choice

(Appendix 6A) Marten Company uses the FIFO method in its process costing system.Operating data for the Casting Department for the month of September appear below:
According to the company's records,the conversion cost in beginning work-in-process inventory was $83,600 at the beginning of September.Additional conversion costs of $427,682 were incurred in the department during the month.
What would be the cost per equivalent unit for conversion costs for September on the Casting Department's production report? (Round off to three decimal places. )

• A) $5.498.
• B) $5.779.
• C) $5.620.
• D) $5.500.

---

Definitions:

Capital Stock

Reflects the amount of equity financing a company has generated through the sale of its shares to investors.

Financing Activities

Transactions and events whereby resources are obtained from, or repaid to, owners (equity financing) or creditors (debt financing).

Statement Of Cash Flows

A financial report showing the inflows and outflows of cash within a company over a specific period.

Net Income

The final amount a company earns after removing all outgoings and tax liabilities from its total income.