Owens Corporation Uses a Process Costing System

Multiple Choice

Owens Corporation uses a process costing system. For March, the beginning work in process inventory consisted of 60,000 units that were 60% complete with respect to processing. The ending work in process inventory for the month consisted of units that were 20% complete with respect to processing. A summary of unit and cost data for the month follows: Assuming that Owens Corporation uses the first-in, first-out method, which of the following is closest to the cost per equivalent unit for processing cost for March?

A) $3.23
B) $3.98
C) $4.02
D) $4.22