Charlie Chairs Inc., manufactures plastic moldings for car seats. Its costing system utilizes two cost categories, direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production.

Data for Department A for February 2015

are:

Work in process, beginning inventory, 35% converted 650 units

Started in Feb 960

WIP ending 160

Costs for Department A for February 2015

are:

:

Direct materials $195,000

Conversion costs $201,000

Direct materials costs added during February $602,000

Conversion costs added during February $429,000

What is the unit cost per equivalent unit of beginning inventory in Department A?

a. $300

b. $ 2184

c. $ 584

d. $ 1,184

I have tried taking 35 % of the 650 beginning and divide that by the total cost beginning cost of $396,000 get $1740.66 Then I tried to take 65% of the beginning 650 and divde that by the beginning cost and get $937.28