Mannarelli 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 $15,660 at the beginning of September.Additional conversion costs of $526,524 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)$5.916
B)$5.340
C)$5.220
D)$5.213

Question

Mannarelli 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 $15,660 at the beginning of September.Additional conversion costs of $526,524 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)$5.916 
B)$5.340 
C)$5.220 
D)$5.213

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 = 89,000 - 24,000 = 65,000
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Mannarelli Corporation Uses the FIFO Method in Its Process Costing