P6-8 Page 359

FIFO cost method; cost of production summary Daytona Beverages Inc. uses the FIFO cost method and adds all materials, labor, and factory overhead evenly to production. A record of the factory operations for October follows:

Production Summary

Work in process, beginning of month, one-fourth completed: 5,000

Started in process: 13,000

Finished and transferred to stockroom: 11,000

Work in process, end of month, three-fourths completed: 7,000

Cost Summary Work in process, beginning of month: $10,000

Materials: $45,000

Labor: $30,000

Factory overhead: $15,000

What is the equivalent unit of production for material, labor, and overhead?

15,000

16,525

11,000

18,000