Outose Concept manufactures small tables in its Processing Department. Direct materials are added at the...
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Outose Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Beforeinspection, some units are spoiled due to undetectable materials defects. Spoiled units generally constitute3% of the good units. Data for December 2017 are asfollows:
WIP, beginning inventory12/1/2017
22,700 units
Direct materials(100% complete)
Conversion costs(80% complete)
Started during December
76,300 units
Completed and transferred out12/31/2017
72,100 units
WIP, ending inventory12/31/2017
18,100 units
Direct materials(100% complete)
Conversion costs(60% complete)
Costs forDecember:
WIP, beginningInventory:
Direct materials
$151,000
Conversion costs
76,900
Direct materials added
231,400
Conversion costs added
294,000
What is the total cost per equivalent unit using the weighted-average method of processcosting? (Round any cost per unit calculations to the nearestcent.)
A.
$3.69
B.
$4.04
C.
$7.90
D.
$3.86
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