Department ABC
the Following Information Is Available for Department ABC

question 99

Multiple Choice

Department ABC
The following information is available for Department ABC for the month of September: $\begin{array}{lll}&\text { Units }&\text { Cost }\\\text { Work-in-Process Inventory, September } 1 \text { ( } 70 \% \text { complete) }&5,000\\\text { Direct materials } & \$ 6,000 \\\text { Direct labour } & & 3,000 \\\text { Manufacturing overhead } && 4,000 \\\\\text { Total Work-in-Process Inventory, September } 1&\$13,000\\\text { Started in production during September }&20,000\\\text { Costs added: }\\\text { Direct materials } & \$ 18,000 \\\text { Direct labour } && 8,000 \\\text { Manufacturing overhead } && 10,000\\\text { Total costs added during September }&&\$36,000\end{array}$ Work-in-Process Inventory, September 30, (80% complete) 2,000
Materials are added at the beginning of the process. (Round unit costs to two decimal places.)
-Refer to Department ABC. What would be the cost per equivalent unit of production for materials when using the FIFO costing method?

• A) $0.90
• B) $0.96
• C) $1.04
• D) $1.20

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Definitions:

Prone

Lying flat, especially face-down, or having a tendency or inclination towards something.

Supine

A position of lying on the back, face or front side up.

Oblique

Positioned at an angle; not parallel or perpendicular to a reference line.

Lateral

Pertaining to the side; describes a position farther from the midline of the body or structure.