Question: A company uses a process costing system. Its Assembly Department's beginning inventory consisted of 56,000 units, 3/4 complete with respect to direct labor and overhead. The department completed and transferred out 112,500 units this period. The ending inventory consists of 46,000 units that are 1/4 complete with respect to direct labor and overhead. All direct materials are added at the beginning of the process. The department incurred direct labor costs of $39,000 and overhead costs of $47,000 for the period. Assuming the weighted average method, the direct labor cost per equivalent unit (rounded to the nearest cent) is:
$0.28.
$0.31.
$0.43.
$0.25.
$0.50.