Cherrington Company Uses a Process Costing System

question 47

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 conversion cost for May is closest to:

• A) $5.65
• B) $5.83
• C) $6.00
• D) $6.20

---

Definitions:

Motivation Theory

A concept that explains what drives individuals to initiate, direct, and sustain behaviors to satisfy their needs and goals.

Organizational Climate

The collective attitudes, values, and standards of behavior that characterize the atmosphere of an organization and affect its members.

Feedback

Information provided about reactions to a product, a person's performance of a task, etc., used as a basis for improvement.

Job Enrichment

Enhancing a job's design by adding duties and responsibilities that increase the employee's satisfaction and motivation, often by incorporating more meaningful tasks.