Question

Use this information about the Assembly Department to answer the questions that follow.

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 $ 7,500

Conversion costs, 3,000 units, 80% completed 6,000

Materials added during April, 10,000 units 29,000

Conversion costs during April 35,000

Goods finished during April, 11,500 units —

April 30 work in process, 1,500 units, 60% completed —

All direct materials are added at the beginning of the process, and the average cost method is used to cost inventories.

The cost per equivalent unit for April is

a. $2.70

b. $6.25

c. $6.40

d. $6.74

Answer

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