Nouri Corporation Uses the FIFO Method in Its Process Costing

question 8

Multiple Choice

Nouri Corporation uses the FIFO method in its process costing system.Data concerning the first processing department for the most recent month are listed below: Note: Your answers may differ from those offered below due to rounding error.In all cases,select the answer that is the closest to the answer you computed.To reduce rounding error,carry out all computations to at least three decimal places. The cost per equivalent unit for conversion costs for the first department for the month is closest to:

• A)$14.48
• B)$14.82
• C)$15.20
• D)$15.56

---

Definitions:

High-low Method

A technique used in accounting and finance to estimate the variable and fixed components of a company's costs based on the highest and lowest levels of activity.

Total Fixed Costs

The sum of all expenses that remain constant regardless of the level of production or business activity.

Productive Month

A period in which there is a high level of output or work accomplishment, often measured in terms of productivity metrics in a business context.

Fixed Cost

Expenses that do not change with the volume of production or business activity, such as rent, salaries, and insurance premiums.