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.
| Work in process, beginning inventory | 390 units | |
Conversion costs (30% complete)
| Units started during March | 840 units |
| Work in process, ending inventory: | 180 units |
Conversion costs (65% complete)
The cost details for the month of March are as follows:
Work in process, beginning inventory:
| Direct materials costs added during March | $707,500 |
| Conversion costs added during March | $1,124,000 |
What is the direct materials cost per equivalent unit during March? (round to the nearest dollar)
◦ $903
◦ $857
◦ $575
◦ $281
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