A Company Uses the FIFO Method for Inventory Costing

question 20

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

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Definitions:

Piaget's Processes

The cognitive processes according to Jean Piaget that describe how children develop intellectual abilities, including assimilation, accommodation, and equilibration.

Assimilation

The cognitive process in which new information is integrated into existing schemas, beliefs, or understanding.

Suck Reflexively

An innate reflex in infants enabling them to suckle for feeding.

Mental Structure

The organization and framework of the mind that influences how individuals think, perceive, and understand the world.