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Question -
Bost Products, Inc. manufactures plastic products and uses process costing to account for the cost of products manufactured. All product costs are added evenly throughout the production process.
The following information was available for the plastic department for the month of December:
Number of units Production Costs Beginning work-in-process 20,000 $ 72,000 (60% complete)
Current period production 300,000 $1,809,000
Ending work-in-process 10,000 (35% complete)
Required: If Bost uses the first-in, first-out (FIFO) method of computing equivalent units and assigning product costs, what is the cost per equivalent unit? (Round to nearest cent.)
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