A Company Uses the FIFO Method for Inventory Costing

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