Calculate the cost per equivalent unit of conversion.

Sparky Corporation uses the FIFO method of process costing. The following information is
available for February in its Molding Department:

Units:
Beginning Inventory: 25,000 units, 100% complete as to materials and 55% complete as to conversion.
Units started and completed: 110,000.
Units completed and transferred out: 135,000.
Ending Inventory: 30,000 units, 100% complete as to materials and 30% complete as to
conversion.

Costs:
Costs in beginning Work in Process - Direct Materials: $43,000.
Costs in beginning Work in Process - Conversion: $48,850.
Costs incurred in February - Direct Materials: $287,000.
Costs incurred in February - Conversion: $599,150.
A) $5.45
B) $4.50
C) $4.16
D) $4.98
E) $4.60


E) $4.60

Business

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