Ebis Corporation Uses the FIFO Method in Its Process Costing

question 29

Multiple Choice

Ebis Corporation uses the FIFO method in its process costing system. The first processing department, the Welding Department, started the month with 13,000 units in its beginning work in process inventory that were 10% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $12,610. An additional 89,000 units were started into production during the month. There were 22,000 units in the ending work in process inventory of the Welding Department that were 30% complete with respect to conversion costs. A total of $806,085 in conversion costs were incurred in the department during the month. The cost per equivalent unit for conversion costs is closest to:

• A)$8.026
• B)$9.700
• C)$9.057
• D)$9.450

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Definitions:

68%

In the context of a normal distribution, it refers to the percentage of data that falls within one standard deviation of the mean.

Germination Rate

The percentage of seeds that successfully sprout and begin to grow over a given period.

Seeds

The reproductive material of plants, usually enclosed in a protective outer covering, capable of developing into another plant.

Standard Deviations

Measures of the amount of variation or dispersion of a set of values, indicating how much the values differ from the mean of the set.