Mullins Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory 700 Materials costs$11,500 Conversion costs$22,200 Percent complete with respect to materials 75%Percent complete with respect to conversion 65%Units started into production during the month 8,600 Units transferred to the next department during the month 7,800 Materials costs added during the month$159,300 Conversion costs added during the month$348,500 Ending work in process inventory: Units in ending work in process inventory 1,500 Percent complete with respect to materials 65%Percent complete with respect to

Question

conversion 50% The cost per equivalent unit for materials for the month in the first processing department is closest to:

A. $19.31
B. $20.42
C. $21.90
D. $17.13

Answer 1

Answer: A