Answer:
b.$4.43.
Explanation:
Cost Units
Beginning inventory:
direct materials, $54,760; 9270
Costs incurred during the month:
direct materials, $470,000 102,000
Total $ 524 760 118,200
Equivalent Unit Costs= $ 524760/118 ,200= $ 4.43
As FIFO method is used first the beginning inventory and started units will be accounted for.
<u>Working</u>
Units
Work in process, November 1st 16,200
Started in production during November 10 2,000
Work in process, November 30th 24,200
The beginning inventory was 60% complete as to materials and 20% complete as to conversion costs.
Beginning Inventory Units
Materials 16,200 (60 %) 9720
Conversion Costs 16,200 (20% ) 3240
The ending inventory was 90% complete as to materials and 40% complete as to conversion costs.
Materials 24,200 (90 %) 21780
Conversion Costs 24,200 (40% ) 9680
Beginning inventory: direct materials, $54,760; direct labor, $20,520; manufacturing overhead, $15,440.
Costs incurred during the month: direct materials, $470,000; direct labor, $184,880; manufacturing overhead, $393,160.
