Question
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
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 2017 are: Work in process, beginning inventory, 30% converted 200 units Units started during February 1000 units Work in process, ending inventory 240 units Costs for Department A for February 2017 are: Work in process, beginning inventory: Direct materials $150,000 Conversion costs $208,000 Direct materials costs added during February $606,000 Conversion costs added during February $431,000 What is the unit cost per equivalent unit of beginning inventory in Department A? (Round the final answer to the nearest whole dollar.) Group of answer choices
a) $750
b) $2,717
c)$3,735
d)$4,217
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