Answer the following questions using the information below:
Dustin Plastics, Inc., manufactures plastic moldings for car seats. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production.

-What is the material cost per equivalent unit in Department A?
A) $2,000
B) $2,750
C) $3,667
D) $2,500
E) $3,143

Question

Answer the following questions using the information below:
Dustin Plastics, Inc., manufactures plastic moldings for car seats. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. 
 
-What is the material cost per equivalent unit in Department A?
A) $2,000 
B) $2,750 
C) $3,667 
D) $2,500 
E) $3,143

Quizplus · Accepted Answer

($200,000 + $2,000,000)/800 = $2,750

Answer the Following Questions Using the Information Below