Reference no: EM132721256
Shiffon Electronics manufactures music player. Its costing system uses two cost? categories, direct materials and conversion costs. Each product must pass through the Assembly? Department, the Programming? department, and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Shiffon Electronics uses weighted-average costing.
The following information is available for the month of March 2017 for the Assembly department:
Work in? process, beginning inventory 380 units
Conversion costs (40?% complete)
Units started during March 870 units
Work in? process, ending? inventory: 140 units
Conversion costs (50?% complete)
The cost details for the month of March are as? follows:
Work in? process, beginning? inventory:
Direct materials $350,000
Conversion costs $367,000
Direct materials costs added during March $710,000
Conversion costs added during March $1,124,000
Problem 1: What is the direct materials cost per equivalent unit during? March? (round to the nearest? dollar)