Marten 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 $83,600 at the beginning of September.Additional conversion costs of $427,682 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)$5.498
B)$5.779
C)$5.620
D)$5.500

Question

Marten 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 $83,600 at the beginning of September.Additional conversion costs of $427,682 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)$5.498 
B)$5.779 
C)$5.620 
D)$5.500

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 = 74,000 - 17,000 = 57,000
 11eaa3fe_30ce_529a_908b_b363efccd855_TB2461_00 
 11eaa3fe_30ce_a0bb_908b_d78a01ddaf41_TB2461_00

Marten Corporation Uses the FIFO Method in Its Process Costing