Question

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.$4.53b.$2.00c.$2.03d.None of these choices are correct.

Answer 1

Answer:

correct answer is   b) $2.00

Explanation:

we know here

started and completed unit  for physical = 18000

so EUP material for 100 % = 18000

and

Ending work in process for physical = 3000

so EUP material for 100 % = 3000

so total EUP material = 18000 + 3000 = 21000

and

Unit cost is here = $\frac{42000}{21000}$

Unit cost =  2 per unit

so correct answer is   b) $2.00