Question: Question: Marginal Maintenance Company makes screwdrivers in a single process and uses weighted average process costing. All material is added at the start of the

Question:

Marginal Maintenance Company makes screwdrivers in a single process and uses weighted average process costing. All material is added at the start of the process. The following information is available for May production:

Units
Beginning Work in Process (30% complete) 4,000
Plus: Units Started 20,000
Total to Account for 24,000
Less: Ending Work in Process (40% complete) 5,000
Units Completed 19,000

The following costs are available for May:

Material Conversion Cost Total Cost
Beginning Work in Process $7,800 $7,000 $14,800
Current Cost 52,200 56,000 108,200
Total Cost $60,000 $63,000 $123,000

Assume that the equivalent units for materials are 20,000 units. What is the cost per unit for materials?

A

$3.00
B

$6.21
C

$2.64
D

$6.15

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