At Onyx Incorporated, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: What is the cost per equivalent unit for direct materials?

Question

At Onyx Incorporated, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:  What is the cost per equivalent unit for direct materials?

Quizplus · Accepted Answer

Since direct materials are added at the beginning of the process, we only need to consider the beginning inventory and the materials added during the period. The total cost of direct materials is divided by the total equivalent units of direct materials to get the cost per equivalent unit. Based on the information given, the cost per equivalent unit for direct materials is $3. Therefore, the best choice is A.

At Onyx Incorporated, Direct Materials Are Added at the Beginning