A business uses the first in first out (FIFO) method for valuation of inventory.
There was no opening inventory in July.
The business purchased direct materials during July as follows:
Each unit required 4 kg of direct materials.
The labour cost for each unit was ＄42.
The fixed overhead for July was ＄85 000.
In July 1000 units were produced and 800 units were sold.
What is the average direct cost for each unit?
＄148
2 )
＄176
3 )
＄185
4 )
＄233
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