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Maplewood Co. uses process costing to account for the production of canned energy drinks. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Beginning inventory consisted of $7,000 in materials and $4,000 in conversion costs. April costs were $36,000 for materials and $40,000 for conversion costs. On April 1, there were 2,000 units in beginning inventory (80% complete). During April 10,000 units were completed. Ending in process inventory was 4,000 units (100% complete for materials, 40% for conversion). The cost per unit for conversion costs using the FIFO method would be
a. $4.00
b. $4.40
c. $1.10
d. $8.70
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some accountants have said that politicization in the development and acceptance of generally accepted accounting
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