Imbram Corporation uses the FIFO method in its process costing system.The first processing department,the Forming Department,started the month with 23,000 units in its beginning work in process inventory that were 40% complete with respect to conversion costs.The conversion cost in this beginning work in process inventory was $27,692.An additional 86,000 units were started into production during the month and 86,000 units were completed and transferred to the next processing department.There were 23,000 units in the ending work in process inventory of the Forming Department that were 10% complete with respect to conversion costs.A total of $221,480 in conversion costs were incurred in the department during the month. The cost per equivalent unit for conversion costs for the month is closest to:
A)$2.80
B)$2.29
C)$3.01
D)$2.58

Question

Quizplus · Accepted Answer

FIFO method
Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 86,000 - 23,000 = 63,000
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Imbram Corporation Uses the FIFO Method in Its Process Costing