Richards Corporation Uses the FIFO Method of Process Costing

Multiple Choice

Richards Corporation uses the FIFO method of process costing.The following information is available for October in its Fabricating Department: Units:
Beginning Inventory: 80,000 units,60% complete as to materials and 20% complete as to conversion.
Units started and completed: 250,000.
Units completed and transferred out: 330,000.
Ending Inventory: 30,000 units,40% complete as to materials and 10% complete as to conversion.
Costs:
Costs in beginning Work in Process - Direct Materials: $37,200.
Costs in beginning Work in Process - Conversion: $79,700.
Costs incurred in October - Direct Materials: $646,800.
Costs incurred in October - Conversion: $919,300.
-Calculate the cost per equivalent unit of conversion.

A) $2.76
B) $3.15
C) $2.90
D) $3.68
E) $3.00