Ebis Corporation Uses the FIFO Method in Its Process Costing

question 29

Multiple Choice

Ebis Corporation uses the FIFO method in its process costing system. The first processing department, the Welding Department, started the month with 13,000 units in its beginning work in process inventory that were 10% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $12,610. An additional 89,000 units were started into production during the month. There were 22,000 units in the ending work in process inventory of the Welding Department that were 30% complete with respect to conversion costs. A total of $806,085 in conversion costs were incurred in the department during the month. The cost per equivalent unit for conversion costs is closest to:

• A)$8.026
• B)$9.700
• C)$9.057
• D)$9.450

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Definitions:

Commercial Bath

A bath product or facility designed for public or mass use, often marketed for relaxation or therapeutic purposes.

Cleansing Pack

A set of products or items designed for the purpose of cleaning wounds or skin to prevent infection and promote healing.

Bag Bath

A bag bath is a method of bathing that involves using pre-moistened, disposable cloths contained in a bag to cleanse the body, commonly used in healthcare settings for patients who cannot bathe themselves.

Oral Mucosa

The moist, protective lining of the oral cavity, including the gums, cheeks, lips, and roof and floor of the mouth.