Which of the following is true when computing cost per equivalent unit in a fifo process costing system? a. prior period costs are combined with costs incurred in the current period and then divided by the equivalent units of production. b. costs incurred in the current period are divided by the equivalent units of production. c. total cost to account for is divided by the equivalent units of production. d. equivalent units of production are divided by costs incurred in the current period. e. equivalent units of production are divided by cost to account for.

The following cost and inventory data are taken from the accounting records of mason company for the year just completed: costs incurred: direct labor cost $ 90,000 purchases of raw materials $ 134,000 manufacturing overhead $ 205,000 advertising expense $ 45,000 sales salaries $ 101,000 depreciation, office equipment $ 225,000 beginning of the year end of the year inventories: raw materials $ 8,100 $ 10,300 work in process $ 5,900 $ 21,000 finished goods $ 77,000 $ 25,800 required: 1. prepare a schedule of cost of goods manufactured. 2. prepare the cost of goods sold section of mason company’s income statement for the year.