Richards Corporation uses the FIFO method of process costing. The following information is available for October in its Fabricating Department: Units:Beginning Inventory: 80,000 units, 60% complete as to materials and 20% complete as to conversion.Units started and completed: 250,000.Units completed and transferred out: 330,000.Ending Inventory: 30,000 units, 40% complete as to materials and 10% complete as to conversion. Costs:Costs in beginning Work in Process - Direct Materials: $37,200.Costs in beginning Work in Process - Conversion: $79,700.Costs incurred in October - Direct Materials: $646,800.Costs incurred in October - Conversion: $919,300. Calculate the cost per equivalent unit of materials.
A. $2.33
B. $2.20
C. $2.59
D. $1.89
E. $2.00
Answer: B
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Dwight, the general manager of a hotel, knows that one of his housekeeping employees has a serious substance-abuse issue. Dwight knows that because of the seriousness of the issue he needs to talk with the employee. However, his assistant manager asks Dwight if he would like her to deal with it. Dwight knows this is not the best option, but he agrees, knowing it is the easy way out. Dwight's decision is an example of
A. relaxed avoidance. B. relaxed change. C. defensive avoidance. D. panic. E. intuition.
The computations for costs to be transferred out of Work in Process Inventory differ if the production process involves multiple departments rather than a single department
Indicate whether the statement is true or false
Leonard Wolf is told by his employer that his position has been eliminated and is offered a position below one of the people who now report to him. What is this called?
A) Wrongful dismissal B) Constructive dismissal C) Just cause dismissal D) Unjust dismissal E) Just cause transfer
Process X has fixed costs of $10,000 and variable costs of $2.40 per unit. Process Y has fixed costs of $9,000 and variable costs of $2.25 per unit. Which of the following statements is TRUE?
A) The crossover point is approximately 6667 units. B) It is impossible for one process to have both of its costs lower than those of another process. C) Process Y is cheaper than process X at all volumes. D) Process X should be selected for very large production volumes. E) Process X is more profitable than process Y and should be selected.