During April, the production department of a process operations system completed

Question

During April, the production department of a process operations system completed and transferred to finished goods 26,000 units that were in process at the beginning of April and 81,000 units that were started and completed in April. April's beginning inventory units were 100% complete with respect to materials and 35% complete with respect to labor. At the end of April, 31,000 additional units were in process in the production department and were 100% complete with respect to materials and 70% complete with respect to labor. The beginning inventory included materials cost of $108,800 and the production department incurred direct materials cost of $334,400 during the month. Compute the direct materials cost per equivalent unit for the department using the weighted-average method.

Multiple Choice

$2.42.

$4.14.

$3.21.

$5.47.

$4.13.

Explanation / Answer

direct materials cost per equivalent unit = direct materials cost / equivalent unit (direct materials)

= 334400/(26000+81000+30000) = 2.42

thus, option A is the correct answer

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