Problem:
Maenhout Corporation uses the FIFO method in its process costing system. Operating data for the Casting Department for the month of September appear below:
Units Percentage Complete
Beginning work in process inventory 21,000 60%
Transferred in from prior department during September 64,000
Ending work in process inventory 22,000 70%
According to the company's records, the conversion cost in beginning work in process inventory was $31,500 at the beginning of September. Additional conversion costs of $172, 396 were incurred in the department during the month.
What would be the cost per equivalent unit for conversion costs for September on the Casting Department's production report? (Round off to three decimal places)
A $2.399
B $2.694
C $2.500
D $2.620