Reid Corporation Uses a Process Costing System in Which Units

question 25

Multiple Choice

Reid Corporation uses a process costing system in which units go through several departments. In the Cutting Department for June, units in the beginning work in process inventory were 80% complete with respect to conversion costs. Units in the ending work in process inventory were 25% complete with respect to conversion costs. Other data for the department for June are as follows: Assuming that the company uses the FIFO cost method, the cost per equivalent unit for conversion costs for June is closest to:

• A)$1.80
• B)$1.40
• C)$1.64
• D)$1.35