Kirkpatrick Company uses a process-cost system with the FIFO method of accounting for beginning inventories. Materials are added at the beginning of the process, and conversion costs are incurred uniformly. Work-in-process at the beginning is assumed to be 40 percent complete and at the end to be 70 percent complete. Additional data follow:

-The unit cost for conversion costs is
A) $1.05.
B) $0.80.
C) $0.72.
D) $0.95.

Question

Kirkpatrick Company uses a process-cost system with the FIFO method of accounting for beginning inventories. Materials are added at the beginning of the process, and conversion costs are incurred uniformly. Work-in-process at the beginning is assumed to be 40 percent complete and at the end to be 70 percent complete. Additional data follow:
 
-The unit cost for conversion costs is
A) $1.05. 
B) $0.80. 
C) $0.72. 
D) $0.95.

Quizplus · Accepted Answer

The Answer of Kirkpatrick Company uses a process-cost system with the FIFO method of accounting for beginning inventories. Materials are added at the beginning of the process, and conversion costs are incurred uniformly. Work-in-process at the beginning is assumed to be 40 percent complete and at the end to be 70 percent complete. Additional data follow:
 
-The unit cost for conversion costs is
A) $1.05. 
B) $0.80. 
C) $0.72. 
D) $0.95.

Kirkpatrick Company Uses a Process-Cost System with the FIFO Method