Landry Co. had the following information for the month of December. All direct materials were one...

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Landry Co. had the following information for the month of December. All direct materials were one...

Landry Co. had the following information for the month of December. All direct materials were one hundred percent complete, and beginning materials cost $24,700.

Work in Process Inventory
Beginning balance @ 12/1: 480 units, 10% completed	$	28,000	Completed 1,090 units and transferred them to finished goods inventory	$	234,288
Direct materials		78,000
Direct labor		54,000
Overhead Property taxes		19,000
Depreciation		50,000
Utilities		30,000
Indirect labor		20,000
Ending balance @ 12/31: 420 units, 20% completed	$	44,712

Cost per equivalent unit for materials under the FIFO method is calculated to be (rounded):

Multiple Choice

$76.574.
$62.911.
$73.636.
$153.641.
$75.728.

business accounting

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Answer 1

Answer #1

	Number units of equivalent units
	Units completed and transferred	1,090
	Add: Ending inventory balance (420*100% materials)	420
	Less: Beginning inventory (480*100% materials)	(480)
	Number of equivalent units (A)	1,030
	Direct material cost (B)	$78,000
	Cost per equivalent units (B/A)	$75.728

Ans	Cost per equivalent unit for materials under the FIFO method is	$75.728
	Option (E) is correct

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Answer 2

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