Lakeland Chemical manufactures a product called Zing. Direct materials are added at the beginning of the process, and conversion activity occurs uniformly throughout production. The beginning work-in-process inventory is 70% complete with respect to conversion; the ending work-in-process inventory is 20% complete. The following data pertain to May:

UnitsWork in process, May 120,000Units started during May65,000Units completed and transferred out72,000Work in process, May 3113,000

TotalDirect MaterialsConversion CostsCosts:Work in process, May 1$45,250$18,100$27,150Costs incurred during May240,23073,600166,630Totals$285,480$91,700$193,780

Using the weighted-average method of process costing, the cost per unit of direct materials is:

Multiple Choice

• $1.13.
• $1.19.
• $1.08.
• $1.18.
• None of the answers is correct.