Long Manufacturing has recently tried to improve its analysis for its manufacturing process. Units started into production equaled 6,000 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 $30,000?
A) $5.00.
B) $5.26.
C) $18.75.
D) $4.69.

Question

Quizplus · Accepted Answer

The materials cost per unit is calculated by dividing the total materials costs by the number of units started into production, as materials are applied at the beginning. Thus, $30,000 / 6,000 units = $5.00 per unit.

Long Manufacturing Has Recently Tried to Improve Its Analysis for Its