Question
Nettle Company uses process costing to account for the production of rubber balls. All direct materials are added at the beginning of the process, and
Nettle Company uses process costing to account for the production of rubber balls. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. Equivalent units have been calculated to be 14,900 units for materials and 14,500 units for conversion costs. Beginning inventory consisted of $8,000 in materials and $5,775 in conversion costs. April costs were $54,385 for materials and $50,750 for conversion costs. Ending inventory still in process consisted of 5,800 units (100% complete for materials, 50% for conversion). The total cost per equivalent unit using the FIFO method would be:
Multiple Choice
$8.09
$7.98
$7.15
$7.06
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started