Howell Manufacturers had no units in process at the beginning of the year. During the current year, 40,000 units were started. There were 5,000 units in work-in-process at the end of the year. These units were 35% complete. If total production costs for the year were $275,625, what should be the cost per equivalent unit?
A) $6.37
B) $6.13
C) $7.21
D) $7.50

Question

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The Answer of Howell Manufacturers had no units in process at the beginning of the year. During the current year, 40,000 units were started. There were 5,000 units in work-in-process at the end of the year. These units were 35% complete. If total production costs for the year were $275,625, what should be the cost per equivalent unit?
A) $6.37
B) $6.13
C) $7.21
D) $7.50

Howell Manufacturers Had No Units in Process at the Beginning