Edward Company Uses the FIFO Method in Its Process Costing

question 64

Multiple Choice

Edward Company uses the FIFO method in its process costing system. The first processing department, the Welding Department, started the month with 10,000 units in its beginning work in process inventory that were 40% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $12,800. An additional 94,000 units were started into production during the month. There were 14,000 units in the ending work in process inventory of the Welding Department that were 80% complete with respect to conversion costs. A total of $286,740 in conversion costs were incurred in the department during the month.
What would be the cost per equivalent unit for conversion costs? (Round off to three decimal places.)

• A) $2.880
• B) $3.200
• C) $2.950
• D) $3.050

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Definitions:

Last Call

Often used in the context of bars or drinking establishments, indicating the final opportunity to order drinks before closing.

Attribution

The process of explaining the causes of behavior and events, often by attributing them to personal dispositions, situations, or a combination of both.

Infer About Causes

Deduce or conclude information regarding the origins or reasons behind certain events or conditions.

Self-Fulfilling Prophecy

A belief or expectation that influences one's behavior in a way that causes the belief to become true.