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

weightedminus−average

costing.

The following information is available for the month of March 2017 for the Assembly department.

Work in​ process, beginning inventory	380380 units
Conversion costs ​(4040​% ​complete)
Units started during March	890890 units
Work in​ process, ending​ inventory:	180180 units
Conversion costs ​(6060​% ​complete)

The cost details for the month of March are as​ follows:

Work in​ process, beginning​ inventory:
Direct materials	$ 348 comma 500$348,500
Conversion costs	$ 367 comma 000$367,000
Direct materials costs added during March	$ 701 comma 000$701,000
Conversion costs added during March	$ 1 comma 120 comma 000$1,120,000

What is the direct materials cost per equivalent unit during​ March? (round to the nearest​ dollar)

Answer 1

	Direct materials
Units transferred out	1090	=380+890-180
Work in​ process, ending​ inventory	180
Equivalent units	1270
	Direct materials
Work in​ process, beginning​ inventory	348500
Direct materials costs added during March	701000
Total costs	1049500
Divide by Equivalent units	1270
Direct materials cost per equivalent unit	826