What is the unit cost for february in assembly department

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Question - Plastic Molding, Inc.'s costing system utilizes 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 production. Conversion costs are allocated evenly throughout production. Data for the Assembly Department for March are:

Work in process, beginning inventory, 40% converted 

400 units

Units started during March 

1,200 units

Work in process, ending inventory 

200 units

 


Work in process, beginning inventory: 


Direct materials 

$200,000

Conversion costs 

$200,000

Direct materials costs added during March 

$2,000,000

Conversion costs added during March 

$2,500,000

What is the unit cost for February in the Assembly Department?

a. $1,750

b. $1,000

c. $3,500

d. $3,900

e. $3,750

Reference no: EM132085798

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