Sparky Corporation Uses the FIFO Method of Process Costing

question 155

Multiple Choice

Sparky Corporation uses the FIFO method of process costing.The following information is available for February in its Molding Department: Units:
Beginning Inventory: 25,000 units,100% complete as to materials and 55% complete as to conversion.
Units started and completed: 110,000.
Units completed and transferred out: 135,000.
Ending Inventory: 30,000 units,100% complete as to materials and 30% complete as to conversion.
Costs:
Costs in beginning Work in Process - Direct Materials: $43,000.
Costs in beginning Work in Process - Conversion: $48,850.
Costs incurred in February - Direct Materials: $287,000.
Costs incurred in February - Conversion: $599,150.
-Calculate the cost per equivalent unit of conversion.

• A)$5.45
• B)$4.50
• C)$4.16
• D)$4.98
• E)$4.60

---

Definitions:

Personal Selling Process

A direct method of selling in which a salesperson personally approaches potential buyers to present products or services with the aim of making a sale.

Stages

Distinct phases or periods within a process or life cycle, characterized by a set of conditions or events that mark progress or development.

Objective

A specific, measurable, achievable, relevant, and time-bound goal that an individual or organization aims to reach.

Stimulus-Response

A concept in psychology and marketing where a stimulus (marketing message) leads to a response (consumer action or behavior).