Answer the following questions using the information below:
The Townsend Tractor Company manufactures small garden tractors on a highly automated assembly line.Its' costing system uses two cost categories, direct materials and conversion costs.Each tractor must pass through the Assembly Department and the Testing Department.Direct materials are added at the beginning of the production process.Conversion costs are allocated evenly throughout production.Townsend Tractor uses weighted-average costing.
-What is the Townsend Company direct materials cost per equivalent unit during April?
A)$1,250.00
B)$1,241.94
C)$575.00
D)$581.25
E)$900.00

Question

Answer the following questions using the information below:
The Townsend Tractor Company manufactures small garden tractors on a highly automated assembly line.Its' costing system uses two cost categories, direct materials and conversion costs.Each tractor must pass through the Assembly Department and the Testing Department.Direct materials are added at the beginning of the production process.Conversion costs are allocated evenly throughout production.Townsend Tractor uses weighted-average costing. 
-What is the Townsend Company direct materials cost per equivalent unit during April?
A)$1,250.00 
B)$1,241.94 
C)$575.00 
D)$581.25 
E)$900.00

Quizplus · Accepted Answer

The direct materials cost per equivalent unit is calculated by dividing the total direct materials cost by the equivalent units of production. The correct calculation leads to $581.25.

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