Dustin Plastics, Inc., manufactures plastic moldings for car seats. Its costing system uses two cost...

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Accounting

Dustin Plastics, Inc., manufactures plastic moldings for car seats. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Data for Department A for February 2018 are:

Work in process, beginning inventory, 40% converted 200 units
Units started during February 600 units
Work in process, ending inventory: 100 units

30% complete as to conversion costs 100% complete as to materials Costs for the Department A for February 2018 are: Work in process, beginning inventory:

Direct materials $200,000
Conversion costs $200,000
Direct materials costs added during February $2,000,000
Conversion costs added during February $2,500,000

What is the material cost per equivalent unit in Department A?

a.$3,143

b.$2,000

c.$2,500

d.$3,667

e.$2,750

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