Answer:
A. $1,615
Explanation:
Provided information,
Total transferred units = 50,000
Opening units = 20,000 which were 1/5 th complete
Equivalent units = 4,000
That means on the remaining 20,000 - 4,000 = 16,000 units full overheads were applied.
30,000 units were started and completed during the month, for which entire overheads will be added.
Newly started = 10,000 units 3/5th complete = 6,000 units completed in closing inventory.
Therefore total equivalent completed units on which overheads applied = 16,000 + 30,000 + 6,000 = 52,000 units
Ending goods in inventory = 10,000 units which are 6,000 equivalent units completed
Total overheads for the month = $14,000
Overheads = $14,000/52,000 = 0.269 per unit
For 6,000 units = $1,615 .38
Therefore correct option is
A. $1,615
