Shiffon Electronics manufactures music player.Its costing system uses two cost categories,direct materials and conversion costs.Each product must pass through the Assembly Department,the Programming department,and the Testing Department.Direct materials are added at the beginning of the production process.Conversion costs are allocated evenly throughout production.Shiffon Electronics uses weighted-average costing.
The following information is available for the month of March 2017 for the Assembly department.

The cost details for the month of March are as follows:
Work in process,beginning inventory:

What is the direct materials cost per equivalent unit during March? (round to the nearest dollar)
A)$903
B)$857
C)$575
D)$281

Question

Shiffon Electronics manufactures music player.Its costing system uses two cost categories,direct materials and conversion costs.Each product must pass through the Assembly Department,the Programming department,and the Testing Department.Direct materials are added at the beginning of the production process.Conversion costs are allocated evenly throughout production.Shiffon Electronics uses weighted-average costing.
The following information is available for the month of March 2017 for the Assembly department.

The cost details for the month of March are as follows:
Work in process,beginning inventory:

What is the direct materials cost per equivalent unit during March? (round to the nearest dollar)
A)$903 
B)$857 
C)$575 
D)$281

Quizplus · Accepted Answer

11ea8a5a_a091_5499_a19c_654869e03b36_TB5540_00_TB5540_00_TB5540_00 Total cost of direct materials = $346,000 + $707,500 = $1,053,500
Direct material cost per equivalent unit = $1,053,500 / 1230 units = $857

Shiffon Electronics Manufactures Music Player