Question
8. Ibarra Corporation uses the FIFO method in its process costing system. The first processing department, the Forming Department, started the month with 16,000 units
8. Ibarra Corporation uses the FIFO method in its process costing system. The first processing department, the Forming Department, started the month with 16,000 units in its beginning work in process inventory that were 20% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $19,250. An additional 97,000 units were started into production during the month and 100,000 units were completed and transferred to the next processing department. There were 13,000 units in the ending work in process inventory of the Forming Department that were 30% complete with respect to conversion costs. A total of $593,123 in conversion costs were incurred in the department during the month. The cost per equivalent unit for conversion costs for the month is closest to:
Multiple Choice
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$6.100
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$5.890
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$5.422
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$6.115
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Merced Corporation has a process costing system and uses the FIFO method. For May, the company's beginning work in process inventory was 75% complete with respect to conversion, and the ending work in process inventory was 80% complete with respect to conversion. Information on units processed and conversion costs incurred during May follow:
Units Conversion Work in process inventory on May 1 28,000 $ 44,000 Units started into production, and costs incurred during the month 130,000 $ 266,700 Units completed and transferred to finished goods during the month 108,000 Work in process inventory on May 31 50,000 The amount of conversion cost in the ending work in process inventory was:
Multiple Choice
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$84,000
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$80,000
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$222,700
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$68,000
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