Question
Middleton uses process costing to control costs in the manufacture of ice picks for the skating industry. The following information pertains to operations for June.
Middleton uses process costing to control costs in the manufacture of ice picks for the skating industry. The following information pertains to operations for June. |
Units | |
Work in process, June 1st | 24,000 |
Started in production during June | 150,000 |
Work in process, June 30th | 36,000 |
The beginning inventory was 60% complete as to materials and 20% complete as to conversion costs. The ending inventory was 90% complete as to materials and 40% complete as to conversion costs. Costs pertaining to June are as follows: Beginning inventory: direct materials, $85,215; direct labor, $31,860; manufacturing overhead, $24,080. Costs incurred during the month: direct materials, $741,000; direct labor, $288,990; manufacturing overhead, $615,030. |
What is the equivalent unit cost for materials assuming Kimbeth uses first-in, first-out (FIFO) process costing? |
$4.75 per unit.
$4.85 per unit.
$4.79 per unit.
$7.22 per unit.
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