Use the information below to answer the following questions:
Dente Pasta Ltd. a specialty pasta maker gives us their data for the year:
WIP inventory, beginning | 0 units |
Units started | 7,200 units |
Units completed and transferred out | 6,700 units |
WIP inventory, ending | 500 units |
Direct materials | $12,600 |
Direct labour | $6,100 |
Manufacturing overhead | $3,500 |
Units in ending WIP inventory were 100% complete for materials and 40% complete for conversion costs.
On December 31, the cost per equivalent unit for direct materials at Dente Pasta Ltd. would be closest to
◦ $1.75
◦ $1.83
◦ $1.64
◦ $1.39