Prasad Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.
-The cost per equivalent unit for conversion costs for the first department for the month is closest to:
A)$38.96
B)$43.33
C)$40.98
D)$40.91

Question

Prasad Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:  Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.
-The cost per equivalent unit for conversion costs for the first department for the month is closest to:
A)$38.96 
B)$43.33 
C)$40.98 
D)$40.91

Quizplus · Accepted Answer

FIFO method
Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 8,900 - 600 = 8,300
 11eaa48f_7bd7_3017_9e4a_31fe88f05e94_TB2485_00 
 11eaa48f_7bd7_5728_9e4a_ad14ac0f360c_TB2485_00

Prasad Corporation Uses the FIFO Method in Its Process Costing