Sec 14

A company uses a process costing system. Its Assembly Department's beginning inventory consisted of 53,600 units, 75% complete with respect to direct labor and overhead. The direct labor beginning inventory costs were $9,800. The department completed and transferred out 118,500 units this period. The ending inventory consists of 43,600 units that are 25% complete with respect to direct labor and overhead. All direct materials are added at the beginning of the process. The department incurred direct labor costs of $33,000 and overhead costs of $41,000 for the period. Assuming the weighted average method, the direct labor cost per equivalent unit (rounded to the nearest cent) is:

Multiple Choice $0.23 $0.20 $0.33 $0.45 $0.38