Answer the following questions using the information below:
Dustin Plastics, Inc., manufactures plastic moldings for car seats. Its costing system utilizes two cost categories, direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production.
Data for Department A for February 2012 are:
Costs for Department A for February 2012 are:

-What is the unit cost per equivalent unit of beginning inventory in Department A?
A)$2,000
B)$3,500
C)$7,000
D)$7,500

Question

Answer the following questions using the information below:
Dustin Plastics, Inc., manufactures plastic moldings for car seats. Its costing system utilizes two cost categories, direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production.
Data for Department A for February 2012 are:
  Costs for Department A for February 2012 are:
 
-What is the unit cost per equivalent unit of beginning inventory in Department A?
A)$2,000 
B)$3,500 
C)$7,000 
D)$7,500

Quizplus · Accepted Answer

From the given data, we cannot determine the quantity of beginning inventory in Department A, however, we do have the total cost of beginning inventory for Direct Materials and Conversion Costs.
Therefore, to calculate the unit cost per equivalent unit of beginning inventory in Department A, we need to divide the total cost of beginning inventory by the total equivalent units of beginning inventory. We do not have information on the equivalent units of beginning inventory, hence we cannot calculate the unit cost per equivalent unit of beginning inventory.

As for the best choice(s), there are no options provided to choose from.

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