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

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Definitions:

Financialization

The method through which financial markets, institutions, and elites increasingly affect economic policy and outcomes.

Stock Repurchasing

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