Reference no: EM132488875

Sparky Corporation uses the FIFO method of process costing. The following information is available for February in its Molding Department:

Units:

1. Beginning Inventory: 33,000 units, 100% complete as to materials and 55% complete as to conversion.
2. Units started and completed: 118,000.
3. Units completed and transferred out: 151,000.
4. Ending Inventory: 34,000 units, 100% complete to materials and 30% complete to conversion.

Costs:

1. Costs in beginning Work in Process - Direct Materials: $51,000.
2. Costs in beginning Work in Process - Conversion: $56,850.
3. Costs incurred in February - Direct Materials: $345,480.
4. Costs incurred in February - Conversion: $607,150.

Question 1: Calculate the cost per equivalent unit of materials.

Multiple Choice

Option 1: $1.76

Option 2: $2.27

Option 3: $1.87

Option 4: $2.64

Option 5: $2.93