it View History Bookmarks Tools Window Help ct Firefox Pione

it View History Bookmarks Tools Window Help ct Firefox Pioneer https://newconnect.mheducation.com/flow/connect.html?session ? a search Firefox and the Web Tell me more Save & Exit Cpt 14-16 Help Saved Sparky Corporation uses the FIFO method of process costing. The following information is available for February in its Molding Department Units: Beginning inventory: 28,000 units, 100% complete as to materials and 60% complete as to conversion. Units started and completed: 113,000. ts Units completed and transferred out: 141,000 Ending Inventory: 31,500 units, 100% complete as to materials and 25% complete as to conversion. oes 00 43 47 . Costs Costs in beginning Work in Process- Direct Materials: $46,000. Costs in beginning Work in Process-Conversion: $51.850. Costs incurred in February- Direct Materials: $316,730. Costs incurred in February- Conversion: $602,150 Calculate the cost per equivalent unit of conversion. Multiple Choice

Solution

Solution :

Equivalent units of Conversion = Beginning Inventory units * (100%-60%) + units started and completed *100% + Ending Inventory units*25%

= 28000 *40% + 113000 + 31500*25%

= 11200 + 113000+ 7875 = 132,075 units

Cost Per equivalent unit of conversion = Conversion cost incrred in febuary / Equivalent units of Conversion

= $602150 / 132075 = $4.56

Hence the last option is correct.