Quill 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 $5,018 at the beginning of March. Additional conversion costs of $420,644 were incurred in the department during the month.
What would be the cost per equivalent unit for conversion costs for March? (Round off to three decimal places.)
A) $8.413
B) $7.586
C) $7.534
D) $7.720

Question

Quill 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 $5,018 at the beginning of March. Additional conversion costs of $420,644 were incurred in the department during the month.
What would be the cost per equivalent unit for conversion costs for March? (Round off to three decimal places.)
A) $8.413 
B) $7.586 
C) $7.534 
D) $7.720

Quizplus · Accepted Answer

The Answer is B

Quill Corporation Uses the FIFO Method in Its Process Costing