Maccari 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 $61,824 at the beginning of September.Additional conversion costs of $206,412 were incurred in the department during the month.
The cost per equivalent unit for conversion costs for September is closest to:
(Round off to three decimal places.)
A) $3.340
B) $3.220
C) $3.156
D) $3.384

Question

Maccari 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 $61,824 at the beginning of September.Additional conversion costs of $206,412 were incurred in the department during the month.
The cost per equivalent unit for conversion costs for September is closest to:
(Round off to three decimal places.)
A) $3.340 
B) $3.220 
C) $3.156 
D) $3.384

Quizplus · Accepted Answer

FIFO method
Units started and completed during the period = Units started into production during the period - Units in ending work in process inventory = 61,000 - 10,000 = 51,000
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Maccari Corporation Uses the FIFO Method in Its Process Costing