Question - Callahan Company uses the weighted-average method in its process costing system. The Packaging Department started the month with 280 units in process that were 90% complete, received 1,480 units from the Finishing Department, and had 180units in process at the end of the period. All materials are added at the beginning of the process, and conversion costs are incurred uniformly. The units in process at the end of the month are 40% complete with respect to conversion costs. During the month 1,580units were completed and transferred out. The department incurred the following costs:
|
Beginning WIP |
Added this month |
Total |
| Transferred In |
$800 |
$13,100 |
$13,900 |
| Direct Materials |
100 |
2,900 |
3,000 |
| Conversion Costs |
700 |
6,490 |
7,190 |
| Total |
$1,600 |
$22,490 |
$24,090
|
The cost per equivalent unit for direct materials is (Round your answer to two decimal places.)
A.$ 1.90
B.$ 13.69
C.$ 1.70
D.$ 7.90