Chapter 18, Problem 6QC

Burton Company uses the weighted-average method in its process costing system. The Packaging Department started the month with 200 units in process, started 1,500 units, and had 150 units 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 20% complete with respect to conversion costs. The department incurred the following costs:

The cost per equivalent unit for direct materials is

1. a. $2.00.
2. b. $4.00.
3. c. $8.00.
4. d. $14.00.