Richards Corporation Uses the FIFO Method of Process Costing

question 6

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 materials.

• A) $2.33
• B) $2.00
• C) $2.20
• D) $2.59
• E) $1.89

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Co-Payments

A fixed amount paid by a patient for healthcare services at the time of service, with the remaining balance covered by insurance.