Use the following to answer questions:
The following information is available for Sulmonter Manufacturing Company for the current period:

32,000 units were started during the period
The ending inventory has 8,000 units, which are 45% complete with respect to direct materials and 65% complete with respect to conversion costs. FIFO costing is used.
-What is the material cost per equivalent unit using FIFO costing?
A) $1.16
B) $1.10
C) $1.35
D) $1.09

Question

Use the following to answer questions:
The following information is available for Sulmonter Manufacturing Company for the current period:
  
32,000 units were started during the period
The ending inventory has 8,000 units, which are 45% complete with respect to direct materials and 65% complete with respect to conversion costs. FIFO costing is used.
-What is the material cost per equivalent unit using FIFO costing?
A) $1.16 
B) $1.10 
C) $1.35 
D) $1.09

Quizplus · Accepted Answer

FIFO costing considers only the costs added during the current period. The material cost per equivalent unit is calculated by dividing the total material costs added during the period by the equivalent units of production for materials.

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