Lee Company Began Making Lipstick in October Using a Single-Step

question 55

Multiple Choice

Lee Company began making lipstick in October using a single-step process.Lee incurred $42,000 for materials and $48,640 for conversion during the month.There were 21,000 cases of lipstick started in October 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 Lee using the FIFO method?

• A)$2.00
• B)$2.03
• C)$4.03
• D)$4.53