Question

Puri Corporation uses the FIFO method in its process costing system.Data concerning the first processing department for the most recent month are listed below: 400 Beginning work in process inventory: Units in beginning work in process inventory Materials costs Conversion costs Percent complete with respect to materials Percent complete with respect to conversion Units started into production during the month Units transferred to the next department during the month Materials costs added during the month Conversion costs added during the month Ending work in process inventory: Units in ending work in process inventory Percent complete with respect to materials Percent complete with respect to conversion $ 4,800 $ 3,300 85% 45% 5,800 5,100 $ 69,500 $ 82,300 1,100 55 % 45 % The cost per equivalent unit for conversion costs for the first department for the month is closest to:

Answer 1

• Requirement: Cost per equivalent unit for conversion cost is CLOSEST to:
  $ 15.20 (or $ 15.2 or $ 15)
• Working

EUP - FIFO Method	Units	% Conversion	EUP - Conversion
Units of ENDING WIP	1,100	45.0%	495
Units STARTED & COMPLETED	4,700 [5100 – 400]	100%	4,700
Units of beginning WIP	400	55% [45% was already complete]	220
Equivalent Units of Production			5,415
COST per EUP			Conversion
Cost incurred this period			$                    82,300.00
Total Costs		Costs	$                    82,300.00
Equivalent units of production		EUP	5,415
Cost per EUP			$                        15.1985 ANSWER