1.Which of the following is true of the first-in, first-out costing method?

a.It calculates the equivalent units of output at the beginning of a reporting period.

b.It uses only current output to calculate the current-period unit cost.

c.It treats the work in beginning work-in-process as belonging to the current period.

d.It includes only prior-period work in determining the completed units of output.

2.Layla Company began making mascara in November 2018 using a single-step process. Layla incurred $42,000 for materials and $48,640 for conversion during the month. There were 21,000 cases of mascara started in November and 3,000 cases unfinished (40 percent complete) at the end of the period. All materials were added at the beginning of the production process. What is the unit cost for materials for Layla using the FIFO method?

a.$4.53

b.$2.00

c.$2.03

d.None of these choices are correct.