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Question - Merckley Company has a process costing system and uses the FIFO method. For May, the company's beginning work in process inventory was 70% complete with respect to conversion, and the ending work in process inventory was 40% complete with respect to conversion. Information on units processed and conversion costs incurred during May follow:
Work in process inventory on May 1 25,000 Units Conversion Cost $22,000
Units started into production, and costs incurred during the month 140,000 Units
Conversion Cost $189,550
Units completed and transferred to finished goods during the month 105,000 Units
Work in process inventory on May 31 60,000 Units
The amount of conversion cost in the ending work in process inventory was (Round the Cost Per Equivalent Unit calculation to 2 decimal places):
44,139
41,955
40,800
43,428
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