Matrix Inc. calculates cost for an equivalent unit of production using the FIFO method. Data for July: Work-in-process inventory, July 1 (36,000 units): Direct materials (95% completed) $ 122,000 Conversion (48% completed) 77,500 Balance in work in process inventory, July 1 $ 199,500 Units started during July 87,000 Units completed and transferred 98,350 Work-in-process inventory, July 31: Direct materials (95% completed) 24,650 Conversion (48% completed) Cost incurred during July: Direct materials $ 185,650 Conversion costs 267,000 Cost per equivalent unit for conversion under the FIFO method is calculated to be: Multiple Choice a. $2.13. b. $2.53. c. $2.87. d. $2.97.
Matrix Inc. calculates cost for an equivalent unit of production using the FIFO method. Data for July: Work-in-process inventory, July 1 (36,000 units): Direct materials (95% completed) $ 122,000 Conversion (48% completed) 77,500 Balance in work in process inventory, July 1 $ 199,500 Units started during July 87,000 Units completed and transferred 98,350 Work-in-process inventory, July 31: Direct materials (95% completed) 24,650 Conversion (48% completed) Cost incurred during July: Direct materials $ 185,650 Conversion costs 267,000 Cost per equivalent unit for conversion under the FIFO method is calculated to be: Multiple Choice a. $2.13. b. $2.53. c. $2.87. d. $2.97.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Matrix Inc. calculates cost for an equivalent unit of production using the FIFO method.
| Data for July: | |||
| Work-in-process inventory, July 1 (36,000 units): | |||
| Direct materials (95% completed) | $ | 122,000 | |
| Conversion (48% completed) | 77,500 | ||
| Balance in work in process inventory, July 1 | $ | 199,500 | |
| Units started during July | 87,000 | ||
| Units completed and transferred | 98,350 | ||
| Work-in-process inventory, July 31: | |||
| Direct materials (95% completed) | 24,650 | ||
| Conversion (48% completed) | |||
| Cost incurred during July: | |||
| Direct materials | $ | 185,650 | |
| Conversion costs | 267,000 | ||
Cost per equivalent unit for conversion under the FIFO method is calculated to be:
Multiple Choice
a. $2.13.
b. $2.53.
c. $2.87.
d. $2.97.
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