Answer the following questions using the information below:
The Cuckoo Clock Shop manufactures clocks on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Cuckoo Clock Shop uses weighted-average costing.
Data for the Assembly Department for June 2013 are:
Costs for June 2013:

-What is the direct materials cost per equivalent unit during June?
A)$561.90
B)$865.10
C)$789.50
D)$945.18

Question

Answer the following questions using the information below:
The Cuckoo Clock Shop manufactures clocks on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Cuckoo Clock Shop uses weighted-average costing.
Data for the Assembly Department for June 2013 are:
   Costs for June 2013:
 
-What is the direct materials cost per equivalent unit during June?
A)$561.90 
B)$865.10 
C)$789.50 
D)$945.18

Quizplus · Accepted Answer

Direct materials cost per equivalent unit = Total direct materials cost / Total equivalent units= $561,900 / 1,000 units= $561.90 per equivalent unit

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