Mukluk Company Uses the FIFO Method in Its Process Costing

question 11

Multiple Choice

Mukluk Company uses the FIFO method in its process costing system. The conversion cost for the month of April is $5.00 per equivalent unit and the material cost is $2.90 per equivalent unit. At the beginning of the month, 1,000 units were in process that were 100% complete with respect to materials and 30% complete with respect to conversion, with a total cost at that point of $2,400. If these units are fully complete by the end of the month, their total cost will be:

• A) $3,500
• B) $3,900
• C) $5,900
• D) $8,000

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