Information About Units Processed and Processing Costs Incurred During a Recent

question 20

Multiple Choice

Information about units processed and processing costs incurred during a recent month in the Refining Department of a manufacturing company follow: $\begin{array} {| l | r | r | } \hline & \text { Number of Units } & \begin{array} { r } \text { Conversion costs } \\\text { percentage complete }\end{array} \\\hline \begin{array} { l } \text { Beginning work in process } \\\text { inventory }\end{array} & 11,000 & 35 \% \\\hline \begin{array} { l } \text { Units started into } \\\text { production }\end{array} & 120,000 & \\\hline \begin{array} { l } \text { Units completed and } \\\text { transferred out }\end{array} & 114,000 & 30 \% \\\hline \begin{array} { l } \text { Ending work in process } \\\text { inventory }\end{array} & 17,000 & \\\hline\end{array}$
The beginning work-in-process inventory included $11,000 of conversion cost. During the month, the Refining Department incurred an additional $290,000 in conversion costs.

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

• A) $2.52.
• B) $2.54.
• C) $2.44.
• D) $2.59.

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Definitions:

Homologous

Referring to genes, chromosomes, or structures that are similar in position, structure, and evolutionary origin, but not necessarily in function.

Psilotum

A genus of fern-like plants that belongs to one of the oldest groups of vascular plants, providing insights into the early evolutionary history of plants.

Herb

A plant with leaves, seeds, or flowers used for flavoring, food, medicine, or perfume.

Exaptation

An exaptation is a trait that initially carries out one function and is later co-opted for a new function. The original function may or may not be retained.