Figure 6-12 Twinnings Corporation manufactures Scheduling Books. There are two processes: printing and binding. The following information is given for the printing department for September.
Units:
Costs:
The company uses FIFO inventory assumption.
Refer to Figure 6-12. What are the FIFO cost per unit for materials?

Question

Figure 6-12 Twinnings Corporation manufactures Scheduling Books. There are two processes: printing and binding. The following information is given for the printing department for September.
Units:
 Costs:
 The company uses FIFO inventory assumption.
Refer to Figure 6-12. What are the FIFO cost per unit for materials?

Quizplus · Accepted Answer

To calculate the FIFO cost per unit for materials, we need to calculate the cost of materials used in the first units produced and then divide it by the number of units produced. In this case, the first units produced in September are 1300, which means we need to look at the materials cost of the first 1300 units received in inventory.

From the table provided, we can see that the total cost of materials received in September is $9,246. The total number of units received in September is 13,000. So, the cost per unit for materials is $9,246/13,000 = $0.71.

However, since we are using the FIFO assumption, we need to use the cost of the first 1300 units received, which is $984. Dividing this by 1300, we get $0.75 as the FIFO cost per unit for materials. Therefore, the correct answer is C.

Figure 6-12 Twinnings Corporation Manufactures Scheduling Books