Long Company has recently tried to improve its analysis for its manufacturing process. Units started into production equaled 6000 and ending work in process equaled 400 units. Long had no beginning work in process inventory. Conversion costs are applied equally throughout production and materials are applied at the beginning of the process. How much is the materials cost per unit if ending work in process was 25% complete and total materials costs equaled $18000?
A) $3.00.
B) $3.16.
C) $11.25.
D) $2.81.

Question

Quizplus · Accepted Answer

The materials cost per unit is calculated by dividing the total materials cost by the number of units started and completed. Since materials are added at the beginning, all 6000 units started are considered for materials cost. Thus, $18000 / 6000 units = $3.00 per unit.

Long Company Has Recently Tried to Improve Its Analysis for Its