A Department Adds All Raw Materials at the Beginning of the Process

question 108

Multiple Choice

A department adds all raw materials at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of July, there was no beginning work-in-process inventory; 18,000 units were completed and transferred out; and there were 10,000 units in the ending work-in-process inventory that were 40% complete. During July, $308,000 materials costs and $286,000 conversion costs were charged to the department. The product cost per unit of production for materials and conversion costs for the month of July was:
Material Conversion

• A) $11.00 $10.20
• B) $11.00 $13.00
• C) $14.00 $10.20
• D) $14.00 $16.00

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