KLM Company uses the FIFO method to compute equivalent units. It has no beginning work in process;

9,000 units are started and completed and 3,000 units in ending work in process are one-third completed.

All material is added at the beginning of the process.

If total materials cost is $60,000, the unit materials cost is:

(a) $5.00.

(b) $6.00.

(c) $6.67 (rounded).

(d) No correct answer given.

AppendixLO1