Teboul Corporation uses the FIFO method in

Teboul Corporation uses the FIFO method in its process costing system. Operating data for the Curing Department for the month of March appear below:        

		Units	Percent Complete with Respect to Conversion
	Beginning work in process inventory....................	7,900	20%
	Transferred in from the prior department during March.................................................................	40,000
	Completed and transferred to the next department during March..................................	43,900
	Ending work in process inventory.........................	4,000	60%

 

According to the company's records, the conversion cost in beginning work in process inventory was $11,850 at the beginning of March. The cost per equivalent unit for conversion costs for March was $7.40.

How much conversion cost would be assigned to the units completed and transferred out of the department during March?
A)        $325,018
B)        $313,168
C)        $296,000
D)        $324,860


TUTORIAL PREVIEW

Equivalent Units of Production
	Materials	Conversion
To complete beginning work in process (materials: 7,900 units × 100% complete; conversion: 7,900 units × 80% complete)	7,900	6,320
Units started and completed during the period (40,000 units started − 4,000 units in ending inventory).........................................................	36,000	36,000

 

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