Question:
Production costs chargeable to the Finishing Department in May at Lim Company are materials $8,000, labor $20,000, overhead $18,000, and transferred-in costs $62,000. Equivalent units of production are materials 20,000 and conversion costs 19,000.
Lim uses the FIFO method to compute equivalent units. Compute the unit costs for materials and conversion costs. Transferred-in costs are considered materials costs.