Use the Following Information for the Next 2 Questions

question 49

Multiple Choice

Use the following information for the next 2 questions.
Gholson, Inc. employs a process costing system in which direct materials are added at the beginning of the process. Direct material costs from the prior period for beginning work in process are $1,250. The current period's direct material costs total $31,500. The company began the period with 500 units, 70% complete, started 10,500 units, and finished the period with 1,000 units, 40% complete.
-Using the weighted average method, the direct material cost per equivalent unit for the period is

• A) $3.00
• B) $2.98
• C) $3.20
• D) $2.55