Author Question: Shiffon Electronics manufactures music player. Its costing system uses two cost categories, direct ... (Read 58 times)

melina_rosy · **on:** Mar 6, 2021

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

$346,000

Conversion costs

$368,500

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

Brenm · **Reply #1 on:** Mar 6, 2021

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