Python Company Produces Plastic Cups in a One- Department Process

question 5

Multiple Choice

Python Company produces plastic cups in a one- department process. The following information is available: $$\begin{array} { l l } \text { Work-in- process inventory,beginning }& 0 \\\text { Units started } & 60,000 \\\text { Units complete and transferred out } & 48,000 \\\text { Work-in- process inventory,ending } & 12,000 \\\text { Direct materialsadded } & \$ 240,000 \\\text { Direct labor } & \$ 165,600 \\\text { Factory overhead } & \$ 82,800\end{array}$$ The units still in process are 100% complete with respect to direct materials and 60% complete with respect to conversion costs. The unit cost of direct materials is:

• A) $4.00
• B) $4.35
• C) $1.00
• D) $5.00

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Definitions:

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