Biology Forums - Study Force

Owens Corporation uses a process costing system. For March, the beginning work in process inventory consisted of 60,000 units that were 60% complete with respect to processing. The ending work in process inventory for the month consisted of units that were 20% complete with respect to processing. A summary of unit and cost data for the month follows:

	Units	Processing Cost
Work-in-process inventory, March 1	60,000	$ 35,000
Units started into production and costs incurred during the month	190,000	$ 700,000
Units completed and transferred out	200,000

Assuming that Owens Corporation uses the FIFO method, which of the following is closest to the cost per equivalent unit for processing cost for March?

▸ $3.23

▸ $3.98

▸ $4.02

▸ $4.22

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