Layla Company began making mascara in November 2018 using a single-step process. Layla incurred $42,000 for materials and $48,640 for conversion during the month. There were 21,000 cases of mascara started in November and 3,000 cases unfinished (40 percent complete) at the end of the period. All materials were added at the beginning of the production process. What is the unit cost for materials for Layla using the FIFO method?

Question

Lea

Business

1 October, 17:14

Layla Company began making mascara in November 2018 using a single-step process. Layla incurred $42,000 for materials and $48,640 for conversion during the month. There were 21,000 cases of mascara started in November and 3,000 cases unfinished (40 percent complete) at the end of the period. All materials were added at the beginning of the production process. What is the unit cost for materials for Layla using the FIFO method?

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Johnny Wilkerson · Answer 1

The unit cost for materials for Layla using the FIFO method is $2.

Explanation:

Physical unit % EUP-material

Units started and completed 18000 100% 18000

Ending work in process 3000 100% 3000

Total 21000 21000

Unit cost = 42000/21000

= $2 per unit

Therefore, The unit cost for materials for Layla using the FIFO method is $2.