Question
Dustin Plastics, Inc., manufactures plastic moldings for car seats. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass
Dustin Plastics, Inc., manufactures plastic moldings for car seats. Its costing system uses 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 2018 are:
Work in process, beginning inventory, 40% converted | 200 units |
Units started during February | 600 units |
Work in process, ending inventory: | 100 units |
30% complete as to conversion costs 100% complete as to materials Costs for the Department A for February 2018 are: Work in process, beginning inventory:
Direct materials | $200,000 |
Conversion costs | $200,000 |
Direct materials costs added during February | $2,000,000 |
Conversion costs added during February | $2,500,000 |
What is the material cost per equivalent unit in Department A?
a.$3,143
b.$2,000
c.$2,500
d.$3,667
e.$2,750
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