Question

The debits to Work in Process—Assembly Department for April, together with data concerning production, are as follows:

April 1, work in process:

Materials cost, 3,000 units $ 7,200

Conversion costs, 3,000 units, 40% completed 6,000

Materials added during April, 10,000 units 25,000

Conversion costs during April 30,800

Goods finished during April, 12,000 units

April 30 work in process, 1,000 units, 40% completed

All direct materials are added at the beginning of the process, and the first-in, first-out cost flow method is used.

The conversion cost per equivalent unit for April is

a. $2.48

b. $2.75

c. $2.50

d. $5.25

Answer

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