During March, the Production Department of a Process Manufacturing System

question 100

Multiple Choice

During March, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of the units transferred, 25,000 were in process at the beginning of March and 110,000 were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to labor. At the end of March, 30,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to labor. The production department incurred direct materials cost of $253,000 and its beginning inventory included materials cost of $93,500. Compute the direct materials cost per equivalent unit for the department using the weighted-average method.

• A) $1.53.
• B) $2.48.
• C) $2.10.
• D) $2.57.
• E) $2.40.

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Definitions:

Specialization

The process of focusing on a specific area of study or work, developing expertise in a particular field.

Standardization

The process of implementing and developing technical standards to ensure consistency, safety, and interoperability of products or processes.

Organizational Behaviour

The study of how people interact within groups in a work environment to understand human aspects in workplaces.

Management

The process of effectively organizing, planning, leading, and controlling resources to achieve organizational objectives.