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Business
Accounting
M15.

M15.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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M15.

 

Sigma Company uses the FIFO method in its process costing system. The first processing department, the Forming Department, started the month with 16,000 units in its beginning work in process inventory that were 20% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $19,520. An additional 97,000 units were started into production during the month and 100,000 units were completed and transferred to the next processing department. There were 13,000 units in the ending work in process inventory of the Forming Department that were 30% complete with respect to conversion costs. A total of $593,123 in conversion costs were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for the month on the Forming Department's production report?
Transcribed Image Text:Sigma Company uses the FIFO method in its process costing system. The first processing department, the Forming Department, started the month with 16,000 units in its beginning work in process inventory that were 20% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $19,520. An additional 97,000 units were started into production during the month and 100,000 units were completed and transferred to the next processing department. There were 13,000 units in the ending work in process inventory of the Forming Department that were 30% complete with respect to conversion costs. A total of $593,123 in conversion costs were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for the month on the Forming Department's production report?
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