Overhill Company 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:
|
|
|
Conversion |
|
|
Units |
Cost |
|
Beginning work in process inventory |
20,000 |
$40,000 |
|
Units started into production, and costs incurred during |
|
|
|
the month . |
|
|
|
Units completed and transferred out . |
150,000 |
$186,000 |
|
Beginning work in process inventory |
130,000 |
|
The cost per equivalent unit for conversion cost is closest to:
A) $1.48
B) $1.50
C) $1.16
D) $1.82