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Tesla Corporation, Which Adds Materials at the Beginning of Production

Question 51

Multiple Choice

Tesla Corporation, which adds materials at the beginning of production, uses a weighted-average process-costing system. Consider the data that follow.  Number of Units  Cost of Materials  Beginning work in process 40,000$80,600 Started in June 60,000124,400 Production completed 75,000 Ending work in process 25,000\begin{array}{llr}&\text { Number of Units }& \text { Cost of Materials }\\\text { Beginning work in process } & 40,000 & \$ 80,600 \\\text { Started in June } & 60,000 & 124,400 \\\text { Production completed } & 75,000 & \\\text { Ending work in process } & 25,000 &\end{array} The company's cost per equivalent unit for materials is:


A) $1.24.
B) $1.66.
C) $1.67.
D) $2.05.
E) None of the answers is correct.

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