Morvan Corporation Uses the FIFO Method in Its Process Costing

question 76

Multiple Choice

Morvan 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.
-The cost per equivalent unit for materials for the month in the first processing department is closest to:

• A)$27.70
• B)$26.82
• C)$28.13
• D)$28.40

---

Definitions:

Interest

The cost of borrowing money, typically expressed as an annual percentage of the principal amount.

Months

Units of time into which a year is divided, normally consisting of 28 to 31 days.

Deposit

A sum of money placed or kept in a bank account, usually to gain interest.

Interest

The charge for borrowing money or the return on investment of saved funds.