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:

Project Activities

Tasks or operations that are executed as part of a project to achieve its objectives and produce the desired outcomes.

Accelerate Schedule

A technique used in project management to reduce the project duration without reducing the project scope.

Reassigning Resources

The process of reallocating personnel, budget, or materials from one area or project to another in response to changing priorities or requirements.

Project Management Software

A digital tool or suite designed to assist project managers and teams in organizing, managing, and tracking projects from inception to completion.