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 conversion cost per equivalent unit in Department A?
A) $5,400
B) $3,425
C) $3,571
D) $3,699
E) 3,857

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 conversion cost per equivalent unit in Department A?
A) $5,400 
B) $3,425 
C) $3,571 
D) $3,699 
E) 3,857

Quizplus · Accepted Answer

($200,000 + $2,500,000)/730 = $3,698.63

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