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 $ 4,800 $ 3,300 85% 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 45% 5,800 5,100 $ 69,500 $ 82,300 1,100 55 % 45 %

Answer 1

Working as follows:

FIFO Method
IN		OUT		Equivalent Units		Equivalent Units
Particulars	Units	Particulars	Units	Materials		Conversion
				% Complete	Equivalent unit	% Complete	Equivalent unit
Beginning WIP	400	Beg. WIP Completed	400	15%	60	55%	220
Units Introduced	5800	Production started and Completed (5800-1100)	4700	100%	4700	100%	4700
		Ending WIP	1100	55%	605	45%	495
	6200		6200		5365		5415

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Prepare cost per equivalent unit for conversion costs for the first department for the month is closest to:

Cost Statement
	Equivalents unit (A)	Current period cost incurred (B)	Cost per unit (B/A)
Material	5365	$69,500	$12.95
Conversion	5415	$82,300	$15.20

Conversion cost for the first department for the month closest to $15.20