B. In order to calculate the cost per unit of materials under FIFO we simply divide the costs incurred for materials this period by the EUP for materials for the period. The EUP for the materials was 104,000 (this is calculated in the next paragraph) and the cost for the period was $468,000 (we use the cost of the materials used in production). This gives a per unit cost for materials of $4.50.

Under the FIFO method of process costing we need to make three calculations to determine the EUP. These are: calculate (1) how many EUP were required to finish BWIP, (2) how many units were started and completed and (3) how many EUP were needed to start the EWIP. There were 16,000 units in BWIP and they were 60% complete for materials, meaning that they needed to do 40%, or 6,400 EUP to finish BWIP. There were a total of 76,000 units started and completed during the period (92,000 completed minus the 16,000 in BWIP). There were 24,000 units in EWIP that were 90% complete for materials, meaning that 21,600 EUP of materials had been done on the EWIP. Adding these three numbers together, we get 104,000 units.

C. This answer uses the EUP as calculated for the weighted average method.

D. This answer does not use the correct EUP for the period.