Quill Corporation Uses the FIFO Method in Its Process Costing

question 28

Multiple Choice

Quill 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 $5,018 at the beginning of March. Additional conversion costs of $420,644 were incurred in the department during the month.
What would be the cost per equivalent unit for conversion costs for March? (Round off to three decimal places.)

• A) $8.413
• B) $7.586
• C) $7.534
• D) $7.720

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Definitions:

Deindividuation

A psychological state where an individual loses self-awareness and a sense of individuality, often in group settings, leading to uninhibited and sometimes deviant behavior.

Sociocultural

Relating to the combined social and cultural factors that influence an individual or community.

Developmental Problem

Issues affecting growth, development, or psychological functioning of an individual, often recognized in childhood.

Family Relocation

The process of moving a family unit from one dwelling place to another, often for reasons related to employment, housing, or lifestyle changes.