Tres Dieci Ltd Employs a Process Costing System in Which

Tres Dieci Ltd employs a process costing system in which direct materials are added at the beginning of the process. Direct material costs from the prior period for beginning work in process are $6,000. The current period's direct material costs total $60,000. The company began the period with 500 units, 60% complete, started 10,500 units, and finished the period with 1,000 units, 50% complete. Using a FIFO system, the direct material cost per equivalent unit is:

A) $6.00
B) $5.46
C) $6.60
D) $5.71

Correct Answer:

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