Cherrington Company Uses a Process Costing System

question 58

Multiple Choice

Cherrington Company uses a process costing system. For May, the month just completed, the beginning work in process inventory consisted of 50,000 units which were 60% complete with respect to conversion costs. The ending inventory for the month was 20% complete with respect to conversion costs. A summary of cost data for the month follows:



-Using the FIFO method, the cost per equivalent unit of materials for May is closest to:

• A) $4.12
• B) $4.50
• C) $4.60
• D) $4.80

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Definitions:

Calculator

An electronic device or software program used for performing mathematical calculations.

Real Number

A numerical representation of a quantity on a continuous spectrum, encompassing all rational and irrational numbers.

Radical Expression

An algebraic expression that contains a square root, cube root, or any other higher root.

Evaluate

The process of determining the value of a mathematical expression.