Reference no: EM132715116

Timekeeper Inc. manufactures clocks on a highly automated assembly line. Its costing system uses two cost? categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Timekeeper Inc. uses? weighted-average costing.

Data for the Assembly Department for June 2017 are?:

Work in? process, beginning inventory               350 units
Direct materials? (100% complete)
Conversion costs? (60% complete)
Units started during June                          1030 units
Work in? process, ending? inventory:            220 units
Direct materials? (100% complete)
Conversion costs? (75% complete)

Costs for June 2017?:

Work in? process, beginning? inventory:

Direct materials                                       ?$94,000
Conversion costs                                    ?$140,000
Direct materials costs added during June       ?$602,500
Conversion costs added during June              ?$402,500

Problem 1: What is the direct materials cost per equivalent unit during? June?

A. $409.86
B. ?$519.40
C. ?$679.51
D. ?$504.71