Question: Answer the following questions using the information below: Shiffon Electronics manufactures music player. Its costing system uses two cost categories, direct materials and conversion costs.
Answer the following questions using the information below:
Shiffon Electronics manufactures music player. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department, the Programming department, and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Shiffon Electronics uses weighted-average costing.
The following information is available for the month of March 2015 for the Assembly department.
Work in process, beginning inventory 300 units
Conversion costs (30% complete)
Units started during April 800 units
Work in process, ending inventory: 100 units
Conversion costs (50% complete)
The cost details for the month of March are as follows:
Work in process, beginning inventory:
Direct materials $345,000
Conversion costs $360,000
Direct materials costs added during April $700,000
Conversion costs added during April $1,120,000
What is the direct materials cost per equivalent unit during March?
| a. | $313 | |
| b. | $636 | |
| c. | $995 | |
| d. | $950 |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
Study Help