The Following Information Is Available for Department a for the Month

question 20

Multiple Choice

The following information is available for Department A for the month of January:
$\begin{array}{lcc}& \underline{\text {Units}}&\underline{\text{cost}} \\\text { Work in process, January } 1 \text { (70\% complete) } & 10,000 & \\ \text { Direct materials } & & \$ 36,000 \\ \text { Direct labour } & & 18,000 \\\text { Manufacturing overhead } & &\underline{ 24,000} \\ \text { Total work in process, January } 1 & &\underline{ \$ 78,000 }\\ \begin{array}{l}\text { Started in production during January } \\\text { Costs added: }\end{array} & 40,000 & \\ \text { Direct materials } & & \$ 108,000 \\ \text { Direct labour } & & 48,000 \\ \text { Manufacturing overhead } & &\underline{ 60,600} \\\text { Total costs added during January } & & \underline{\$ 216,600 }\\\text { Work in process, January } 31 \text { ( } 80 \% \text { complete) }&4,000\end{array}$ Materials are added at the beginning of the process.Round unit costs to two decimal places.
-Refer to the figure.What is the cost per equivalent unit of production for materials using the weighted average method?

• A)$2.70
• B)$2.88
• C)$3.12
• D)$3.60

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