Sparky Corporation uses the FIFO method of process costing.
The following information is available for February in its Molding Department: Units: Beginning Inventory: 41,000 units, 100% complete as to materials and 60% complete as to conversion. Units started and completed: 126,000. Units completed and transferred out: 167,000. Ending Inventory: 38,000 units, 100% complete as to materials and 30% complete as to conversion. Costs: Costs in beginning Work in Process – Direct Materials: $59,000. Costs in beginning Work in Process – Conversion: $64,850. Costs incurred in February – Direct Materials: $394,600. Costs incurred in February – Conversion: $615,150. Calculate the cost per equivalent unit of materials.
Multiple Choice
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$2.81
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$1.59
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$3.13
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$2.41
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$1.92
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