During January, the Production Department of a Process Operations System

During January, the production department of a process operations system completed and transferred to finished goods a total of 78,000 units. At the end of January, 9,000 additional units were in process in the production department and were 65% complete with respect to labor. The beginning inventory included labor cost of $37,100 and the production department incurred direct labor cost of $294,300 during January. Compute the direct labor cost per equivalent unit for the department using the weighted-average method.

A) $3.95.
B) $6.34.
C) $3.51.
D) $4.25.
E) $3.77.

Correct Answer:

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