Answer (B) is correct . Under the FIFO method, EUP for conversion costs equal 98,400 [(16,000 units in BWIP ¡Á 80%) + (76,000 units started and completed ¡Á 100%) + (24,000 units in EWIP ¡Á 40%)]. Conversion costs incurred during the current period equal $574,040 ($182,880 DL + $391,160 FOH). Hence, the equivalent unit cost for conversion costs is $5.83 ($574,040 ¡Â 98,400).
Answer (A) is incorrect because The amount of $5.65 is based on EUP calculated under the weighted-average method.
Answer (C) is incorrect because The amount of $6.00 is the cost per equivalent unit calculated under the weighted-average method.
Answer (D) is incorrect because The amount of $6.20 results from combining conversion costs for May with those in beginning work-in-process and dividing by 98,400?EUP.
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Using the FIFO method, Kimbeth’s equivalent unit conversion cost for May is
