The Debits to Work in Process-Assembly Department for May, Together

question 96

Multiple Choice

The debits to Work in Process-Assembly Department for May, together with data concerning production, are as follows: May 1, work in process:
Materials cost, 3,000 units $ 8,000
Conversion costs, 3,000 units, 66.7% completed 6,000
Materials added during May, 10,000 units 30,000
Conversion costs during May 31,000
Goods finished during May, 11,500 units 0
May 31 work in process, 1,500 units, 50% completed 0
All direct materials are placed in process at the beginning of the process and the first­in, first­out method is used to cost inventories.The materials cost per equivalent unit for May is

• A)$3.00
• B)$3.80
• C)$2.92
• D)$2.31

---

Definitions:

Raw Materials

Basic materials that are used in the production process to manufacture goods and are not yet processed or fabricated.

Work in Process

Goods that are in various stages of the production process but are not yet completed.

Finished Goods

Products that have completed the manufacturing process but have not yet been sold or distributed to customers.

Job Order Cost System

An accounting system that accumulates costs for each individually customized job, useful in manufacturing or service settings where work is undertaken on a specific order basis.