Reid Corporation uses a process costing system in which units go through several departments. In the Cutting Department for June, units in the beginning work in process inventory were 80% complete with respect to conversion costs. Units in the ending work in process inventory were 25% complete with respect to conversion costs. Other data for the department for June are as follows: Assuming that the company uses the FIFO cost method, the cost per equivalent unit for conversion costs for June is closest to:
A)$1.80
B)$1.40
C)$1.64
D)$1.35

Question

Reid Corporation uses a process costing system in which units go through several departments. In the Cutting Department for June, units in the beginning work in process inventory were 80% complete with respect to conversion costs. Units in the ending work in process inventory were 25% complete with respect to conversion costs. Other data for the department for June are as follows:  Assuming that the company uses the FIFO cost method, the cost per equivalent unit for conversion costs for June is closest to:
A)$1.80 
B)$1.40 
C)$1.64 
D)$1.35

Quizplus · Accepted Answer

The Answer of Reid Corporation uses a process costing system in which units go through several departments. In the Cutting Department for June, units in the beginning work in process inventory were 80% complete with respect to conversion costs. Units in the ending work in process inventory were 25% complete with respect to conversion costs. Other data for the department for June are as follows:  Assuming that the company uses the FIFO cost method, the cost per equivalent unit for conversion costs for June is closest to:
A)$1.80 
B)$1.40 
C)$1.64 
D)$1.35

Reid Corporation Uses a Process Costing System in Which Units