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Richards Corporation uses the FIFO method of process costing. The following information is available for October...

Richards Corporation uses the FIFO method of process costing. The following information is available for October in its Fabricating Department:

Units:
Beginning Inventory: 85,000 units, 70% complete as to materials and 20% complete as to conversion.
Units started and completed: 255,000.
Units completed and transferred out: 340,000.
Ending Inventory: 32,500 units, 40% complete as to materials and 15% complete as to conversion.

Costs:
Costs in beginning Work in Process - Direct Materials: $42,200.
Costs in beginning Work in Process - Conversion: $84,700.
Costs incurred in October - Direct Materials: $716,440.
Costs incurred in October - Conversion: $1,002,900.

Calculate the cost per equivalent unit of conversion.

Multiple Choice

  • $2.67

  • $3.32

  • $3.06

  • $3.93

  • $2.88

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Expert Solution

ekkarill92 answered 2 years ago
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