Question #$40-$A

Tiger Co$,$ uses FIFO method of process costing to account for the production of canned food. Beginning Inventory for January consisted of $4,000$ units that were $40\%$ completed. Direct materials are adided at the beginning of the process and conversion costs are incurred uniformly throughout the process $10,000$ units were started into the process during January. During January $12,000$ units were compisted Ending Inventory still in the process of the end of January consisted of $2,000$ units that wers $30\%$ completed. Beginning inventory consisted of $$7,200$ in materials and $$2,240$ in conversion costs January costs were $$20,000$ for materials and $$18,000$ for conversion costs. The cost per unit using the FIFO method would be

$$3\mathrm{.}50$

$$2\mathrm{.}00$

$$150$

$$3\mathrm{.}43$