Question

Andrews Corporation uses a process costing system for manufacturing. The following information is available for the February in its Polishing Department:
Equivalent units of productiondirect materials 110,000 EUP
Equivalent units of productionconversion 95,000 EUP
Costs in beginning Work in Processdirect materials $49,000
Costs in beginning Work in Processconversion $36,000
Costs incurred in Februarydirect materials $414,000
Costs incurred in Februaryconversion 520,000

The cost per equivalent unit of production for direct materials is:
A. $9.26
B. $4.21
C. $4.97
D. $5.05
E. $5.85

Answer

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