Peace Products Inc -If Peace Uses the First-In,first-Out (FIFO)method of Computing Equivalent Units

question 24

Multiple Choice

Peace Products Inc.
Peace Products Inc. uses process costing. The following information was available for the current year:
$\begin{array}{lrr}&\text { Number }&\text { Production }\\& \underline{\text { of units }}& \underline{\text { Costs }}\\\text { Beginning work-in-process ( } 20 \% \text { complete) } & 1000 & \$ 5850 \\\text { Current period production } & 40000 & 604500 \\\text { Ending work-in-process ( } 70 \% \text { complete) } & 6000 &\end{array}$

-If Peace uses the first-in,first-out (FIFO) method of computing equivalent units and assigning product costs,what is the cost per equivalent unit? (round to nearest cent)

• A) $15.11
• B) $13.56
• C) $15.50
• D) $15.65

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Definitions:

Extracellular

Outside the cell.

Osmotic Pressure

Force required to prevent the movement of water across a selectively permeable membrane.

Na+

A symbol representing sodium ions, which are essential electrolytes in the body, playing key roles in nerve impulse conduction, muscle contraction, and fluid balance.

Plasma

The liquid component of blood in which blood cells are suspended, consisting largely of water, proteins, and dissolved substances.