Question Assume Sanchez Corporation uses the weighted average process costing method. The Packaging Department had 17,000 units in beginning inventory. These units contained $176,000 in direct materials, $160,000 in direct labor, and $120,000 in overhead. During the period, the department incurred costs of $600,000 in direct materials, $800,000 in direct labor and $400,000 in overhead and started 480,000 units. Ending inventory consisted of 6,000 units which were 100% complete with respect to direct materials and 50% complete with respect to direct labor and overhead. What is the cost per equivalent unit for direct materials (rounded to the nearest cent)?

Responses

$1.33

$1.56

$3.00

$8.24