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