Qart Corporation uses the FIFO method in its process costing system.Operating data for the Cutting Department for the month of March appear below: According to the company's records,the conversion cost in beginning work in process inventory was $1,656 at the beginning of March.Additional conversion costs of $129,960 were incurred in the department during the month. The cost per equivalent unit for conversion costs for March is closest to:
A)$1.710
B)$1.677
C)$1.756
D)$1.840

Question

Qart Corporation uses the FIFO method in its process costing system.Operating data for the Cutting Department for the month of March appear below:  According to the company's records,the conversion cost in beginning work in process inventory was $1,656 at the beginning of March.Additional conversion costs of $129,960 were incurred in the department during the month. The cost per equivalent unit for conversion costs for March is closest to:
A)$1.710 
B)$1.677 
C)$1.756 
D)$1.840

Quizplus · Accepted Answer

FIFO method
Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 74,500 - 4,500 = 70,000
 11eaa3fe_30cb_ba85_908b_4bd5b0e66a76_TB2461_00 
 11eaa3fe_30cb_e196_908b_bf7122179197_TB2461_00

Qart Corporation Uses the FIFO Method in Its Process Costing