Use the information below to answer the following questions:
Germ Away Ltd. a disinfectant manufacturer offers the following information:
WIP inventory, January 1 | 0 units |
Units started | 21,500 units |
Units completed and transferred out | 14,500 units |
WIP inventory, December 31 | 7,000 units |
Direct materials | $252,500 |
Direct labour | $592,500 |
Manufacturing overhead | $375,100 |
The units in ending WIP inventory were 60% complete for materials and 40% complete for conversion costs.
On December 31, the cost per equivalent unit for materials for Germ Away would be closest to
◦ $9.82
◦ $14.60
◦ $20.06
◦ $13.50