Department Alpha had no beginning inventory.The department added direct materials costing $55,040 and conversion costs of $88,660 during the month of July.Materials are added at the beginning of the process and conversion costs are added evenly throughout the process in this department.During the month, 40,000 units were completed.At the end of July, 3,000 units remained which were 10% complete with respect to conversion costs.Which one of the following is the correct cost per equivalent unit for materials for July?
A)$1.28
B)$3.48
C)$6.98
D)$2.20

Question

Quizplus · Accepted Answer

Equivalent units for materials = 40,000 units + (3,000 units x 10%) = 43,000 unitsCost per equivalent unit for materials = $55,040 / 43,000 units = $1.28

Department Alpha Had No Beginning Inventory