A Company Uses a Process Cost Accounting System and the FIFO

Multiple Choice

A company uses a process cost accounting system and the FIFO inventory valuation method.Its Assembly Department's beginning inventory consisted of 50,000 units,three-fourths complete with respect to direct labor and overhead.The department started and finished 127,500 units this period.The ending inventory consists of 40,000 units that are one-fourth complete with respect to direct labor and overhead.All direct materials are added at the beginning of the process.Goods in Process included direct labor costs of $24,000 and overhead costs of $32,000 for the period.The direct labor cost per equivalent unit is:

A) $0.126
B) $0.160
C) $0.178
D) $0.213
E) $0.373