What is the unit cost per equivalent unit in Department A

ACCOUNTING

Multiple Choice

Injection Molding, 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 20x3 are:

Work in process, beginning inventory, 40% converted 200 units

Units started during February 600 units

Work in process, ending inventory 100 units



Costs for Department A for February 20x3 are:

Work in process, beginning inventory:

Direct materials $100,000

Conversion costs $100,000

Direct materials costs added during February $1,000,000

Conversion costs added during February $1,250,000



What is the unit cost per equivalent unit in Department A?

a. $1,000

b. $1,750

c. $3,500

d. $3,750

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