Qik Corporation uses the FIFO method in its process costing system.Operating data for the Cutting Department for the month of March appear below: According to the company's records,the conversion cost in beginning work in process inventory was $45,662 at the beginning of March.Additional conversion costs of $305,576 were incurred in the department during the month. The cost per equivalent unit for conversion costs for March is closest to:
A)$5.77
B)$5.72
C)$5.91
D)$6.04

Question

Qik Corporation uses the FIFO method in its process costing system.Operating data for the Cutting Department for the month of March appear below:  According to the company's records,the conversion cost in beginning work in process inventory was $45,662 at the beginning of March.Additional conversion costs of $305,576 were incurred in the department during the month. The cost per equivalent unit for conversion costs for March is closest to:
A)$5.77 
B)$5.72 
C)$5.91 
D)$6.04

Quizplus · Accepted Answer

FIFO method
Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 58,400 - 8,400 = 50,000
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 11eaa48f_7bce_f281_9e4a_1d53caa2f329_TB2485_00

Qik Corporation Uses the FIFO Method in Its Process Costing