Question 9

Timekeeper Inc. manufactures clocks on highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Timekeeper Inc. uses weighted-average costing.

DATA FOR THE ASSEMBLY DEPARTMENT FOR JUNY 2017 ARE
Work in process, beginning inventory	350 units
Direct materials ( 100% complete)
Conversion costs ( 60% complete)
Units Started during June	1030 units
Work in process, ending inventory	220 units
Direct materials ( 100% complete)
Conversion costs ( 75% complete)
COSTS FOR JUNE 2017:
Work in process, beginning inventory
Direct materials	$94,000
Conversion costs	$140,000
Direct materials costs added during June	$602,500
Conversion costs added during June	$402,500

What is the direct materials cost per equivalent unit during June?

a) $679.51

b) $519.40

c) $504.71

d) $409.86