Castle Company Uses the FIFO Method in Its Process Costing

question 25

Multiple Choice

Castle Company uses the FIFO method in its process costing system.In the Cutting Department in June,units were four-fifths complete with respect to conversion in the beginning work in process inventory and one-third complete with respect to conversion in the ending work in process inventory.Other data for the department for June follow: The cost per equivalent unit for conversion cost is closest to:

• A)$1.40
• B)$1.35
• C)$1.21
• D)$1.64

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Definitions:

Core Capabilities

Fundamental skills, knowledge, and expertise that give an organization a competitive advantage in its field.

Global Licensing

A cross-border agreement that allows companies in different countries to use the properties (such as patents, trademarks, or technology) of another.

Turnkey Operation

A type of project that is constructed so that it can be sold or handed over to the buyer in a ready-to-use condition.

Chemical Factory

A facility where chemical processes are carried out, especially for manufacturing chemicals on a large scale.