Reference no: EM132802589

Davis Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning inventory were:
 
                                Cost          Percent Complete
Material costs        7,500        75%
Conversion costs     4,999       45%

A total of 5,400 units were started and 4,700 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

Materials costs $112,900
Conversion costs $93,900

The ending inventory was 85% complete with respect to materials and 30% complete with respect to conversion costs.

Problem 1: The cost per equivalent unit for materials for the month in the first processing department is closest to:

option 1: $21.37
option 2: $19.47
option 3: $20.04
option 4: $20.76