Richards Corporation Uses the FIFO Method of Process Costing

question 69

Multiple Choice

Richards Corporation uses the FIFO method of process costing. The following information is available for October in its Fabricating Department: Units:
Beginning Inventory: 80,000 units, 60% complete as to materials and 20% complete as to conversion.
Units started and completed: 250,000.
Units completed and transferred out: 330,000.
Ending Inventory: 30,000 units, 40% complete as to materials and 10% complete as to conversion.
Costs:
Costs in beginning Work in Process - Direct Materials: $37,200. Costs in beginning Work in Process - Conversion: $79,700.
Costs incurred in October - Direct Materials: $646,800. Costs incurred in October - Conversion: $919,300.
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Calculate the cost per equivalent unit of conversion.

• A) $3.15
• B) $3.00
• C) $3.68
• D) $2.76
• E) $2.90

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Definitions:

Presumed Innocent

The principle that an individual is considered innocent until proven guilty in a court of law.

Commercial Property

Real estate property that is used for business activities, such as offices, retail spaces, warehouses, and industrial buildings.

Residential Property

Real estate that is used for housing or dwelling purposes.

Special Deterrence

A principle in criminal justice aiming to prevent a particular offender from committing future crimes by imposing a penalty for their actions.