Overhill Corporation Uses the FIFO Method in Its Process Costing

Multiple Choice

Overhill Corporation uses the FIFO method in its process costing system. In the Cutting Department in June, units were 80% complete with respect to conversion in the beginning work in process inventory and 25% complete with respect to conversion in the ending work in process inventory. Other data for the department for June follow: The cost per equivalent unit for conversion cost is closest to:

A) $1.48
B) $1.50
C) $1.16
D) $1.82