Malaviya Corporation Uses the FIFO Method in Its Process Costing

question 59

Multiple Choice

Malaviya Corporation uses the FIFO method in its process costing system. Operating data for the Casting Department for the month of September appear below:
According to the company's records, the conversion cost in beginning work in process inventory was $63,104 at the beginning of September. Additional conversion costs of $654,240 were incurred in the department during the month.
What would be the cost per equivalent unit for conversion costs for September? (Round off to three decimal places.)

• A) $8.060
• B) $9.280
• C) $9.087
• D) $9.400

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Definitions:

Conduction Deafness

Hearing loss that occurs when sound waves cannot be efficiently conducted through the outer ear canal to the eardrum and the tiny bones of the middle ear.

Eardrum

A thin membrane that separates the outer ear from the middle ear and vibrates in response to sound waves, enabling hearing.

Basilar Membrane

The basilar membrane is a critical component of the inner ear, situated within the cochlea; it plays a substantial role in the mechanical analysis of sound waves for hearing.

Cochlea

A spiral-shaped cavity in the inner ear, containing the organ responsible for converting sound waves into nerve signals perceived as sound by the brain.