Use the information below to answer the following questions:
The Adams Company uses a process costing system. During the current period, 1,600 units were started and 1,200 units were completed and transferred out. Ending units were 70% complete for materials and 35% complete for conversion costs. Direct materials costs added were $32,500 and conversion costs added were $31,400. There was no beginning WIP inventory and conversion costs are added evenly throughout the process.
-At the end of the period, the cost per equivalent unit for direct materials for the Adams Company would be closest to
A) $26.17.
B) $27.08.
C) $23.43.
D) $21.96.
Correct Answer:
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