Mpho Company uses the FIFO method in its process costing system. The conversion cost for the month of April is R5.00 per equivalent unit and the material cost is R2.90 per equivalent unit. At the beginning of April, 1 000 units were in process that were 100% complete with respect to materials and 30% complete with respect to conversion, with a total cost at that point of R2 400. No losses occured during the month. If these units are fully complete by the end of the month, their total cost will be: A. R3 900 B. R3 500 C. R5 900 D. R8 000
Mpho Company uses the FIFO method in its process costing system. The conversion cost for the month of April is R5.00 per equivalent unit and the material cost is R2.90 per equivalent unit. At the beginning of April, 1 000 units were in process that were 100% complete with respect to materials and 30% complete with respect to conversion, with a total cost at that point of R2 400. No losses occured during the month. If these units are fully complete by the end of the month, their total cost will be: A. R3 900 B. R3 500 C. R5 900 D. R8 000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mpho Company uses the FIFO method in its
The conversion cost for the month of April is R5.00 per equivalent unit and the material cost is R2.90 per equivalent unit.
At the beginning of April, 1 000 units were in process that were 100% complete with respect to materials and 30% complete with respect to conversion, with a total cost at that point of R2 400.
No losses occured during the month.
If these units are fully complete by the end of the month, their total cost will be:
| A. |
R3 900 |
|
| B. |
R3 500 |
|
| C. |
R5 900 |
|
| D. |
R8 000 |
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