(Appendix 4A) Malmedy Corporation uses the FIFO method in its process costing system. The following data pertain to operations in the first processing department for a recent month:

-What was the cost per equivalent unit for materials during the month?
A) $3.95
B) $4.50
C) $2.00
D) $5.00

Question

(Appendix 4A) Malmedy Corporation uses the FIFO method in its process costing system. The following data pertain to operations in the first processing department for a recent month:
 
-What was the cost per equivalent unit for materials during the month?
A) $3.95 
B) $4.50 
C) $2.00 
D) $5.00

Quizplus · Accepted Answer

Units in beginning work in process inventory + Units started into production or transferred in = Units in ending work in process inventory + Units completed and transferred out
Units in beginning work in process inventory + 25,200 = 2,000 + 24,000
Units in beginning work in process inventory = 2,000 + 24,000 − 25,200 = 800
FIFO method equivalent units of production
 11ea7761_18c2_962b_81a5_7b7f1664fb6e_TB2580_00 FIFO method cost per equivalent unit
 11ea7761_18c2_962c_81a5_6351ad8b1e79_TB2580_00

(Appendix 4A) Malmedy Corporation Uses the FIFO Method in Its