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The Ever Clean Refinery Company uses a FIFO process costing system to account for its refinery operations. All direct materials are added once units are
The Ever Clean Refinery Company uses a FIFO process costing system to account for its refinery operations. All direct materials are added once units are 30% complete with respect to conversion costs. Data from the month of October is presented in the table below: Direct Materials Conversion Costs Work-in-process costs, October1 $27,000 $49,500 Costs added during October $358,350 $722,700 Units completed 50,000 50,000 EWIP physical units (25% complete with respect to conversion costs) 5,000 5,000 BWIP physical units (75% complete with respect to conversion costs) 10,000 10,000 What was the cost per equivalent unit with respect to direct materials (rounded to cents if necessary)? b. $5.97 C. $7.96 d. $8.96
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