Qik Corporation Uses the FIFO Method in Its Process Costing

question 17

Multiple Choice

Qik Corporation uses the FIFO method in its process costing system.Operating data for the Cutting Department for the month of March appear below: According to the company's records,the conversion cost in beginning work in process inventory was $45,662 at the beginning of March.Additional conversion costs of $305,576 were incurred in the department during the month. The cost per equivalent unit for conversion costs for March is closest to:

• A)$5.77
• B)$5.72
• C)$5.91
• D)$6.04

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Definitions:

Stated Value

A value assigned to a corporation's stock for accounting purposes, which may bear no relation to the market value.

Shares

Units of ownership interest in a corporation or financial asset that provide a share in the corporation's profits and a claim on its assets.

Paid-In Capital

The total amount of money raised by a company through the sale of shares to the shareholders, including additional amounts over the nominal value.

Issue Price

The price at which new securities are sold to the public or investors by the issuer when they are first offered.