A Company Uses the FIFO Method for Inventory Costing

question 67

Multiple Choice

A company uses the FIFO method for inventory costing.At the start of the period the production department had 20,000 units in beginning Work in Process inventory which were 40% complete;the department completed and transferred 165,000 units.At the end of the period,22,000 units were in the ending Work in Process inventory and are 75% complete.The production department had labor costs in the beginning goods is process inventory of $99,000 and total labor costs added during the period are $726,825.Compute the equivalent cost per unit for labor.

• A)$4.40.
• B)$4.76.
• C)$4.19.
• D)$4.55.
• E)$4.61.

---

Definitions:

Pure Monopolist

A single seller in a market that produces a unique product without close substitutes, controlling the market price.

Marginal Cost

The cost incurred by producing one additional unit of a product or service.

Price Discrimination

A strategy in pricing where the same provider sells goods or services that are identical or nearly identical at varying prices in distinct markets.

Illegal

refers to activities or actions that are prohibited by law and punishable if violated.