Herbicida Manufacturing Produces a Chemical Herbicide and Uses Process Costing

Herbicida Manufacturing produces a chemical herbicide and uses process costing.There are three processing departments-Mixing,Refining,and Packaging.On January 1,the first department-Mixing-had no beginning inventory.During January,40,000 fl.oz.of chemicals were started in production.Of these,34,000 fl.oz.were completed,and 6000 fl.oz.remained in process.In the Mixing Department,all direct materials are added at the beginning of the production process,and conversion costs are applied evenly throughout the process.The weighted-average method is used. At the end of the month,Herbicida calculated equivalent units in the Mixing Department as shown below:
$$\begin{array} { | l | r | r | r | } \hline \text { UNITS } & & { \text { Equivalent Units } } & \text { Equivalent Units } \\\hline \text { Units accounted for } & & \text { Direct Materials Costs } & \text { Conversion Costs } \\\hline \begin{array} { l r r } \text { Completed and transferred } \\\text { but }\end{array} & 34,000 & 34,000 & 34,000 \\\hline \text { Ending work-in-process* } & \underline { 6000 } & \underline { 6000 } & \underline { 3600 } \\\hline & 40,000 & 40,000 & 37,600 \\\hline\end{array}$$ * Percent complete for direct materials costs: 100%
Percent complete of completion for conversion costs: 60%
During January,the Mixing Department incurred $49,000 in direct materials costs and $213,000 in conversion costs.How much was the cost per equivalent unit for materials and for conversion costs?
(Use the weighted-average method and round your answer to the nearest cent.)

A) $8.17 per EUP for direct materials and $5.33 per EUP for conversion costs
B) $1.23 per EUP for direct materials and $6.26 per EUP for conversion costs
C) $1.44 per EUP for direct materials and $6.26 per EUP for conversion costs
D) $1.23 per EUP for direct materials and $5.66 per EUP for conversion costs

Correct Answer:

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