Answer:
The resin materials cost per foot of finished product for June is $0.53
Option a) $0.53 is the right answer
Step-by-step explanation:
Given the data in the question;
May June uly
Resin pounds input
into the process 470,000 700,000 650,000
Price per pound X$1.50 X$1.50 X$1.50
Plastic material costs $493,000 $640,000 $677,000
Conversion costs $80,000 $120,000 $115,000
Conduit output from
the process (feet) 800,000 1,200,000 1,130,000
Assuming that there is one-half pound of resin per foot of the finished product, determine the resin materials cost per foot of finished product for June.
Now;
Materials cost for June = $640,000
Number of Feet produced as output in June = 1,200,000
so
Material Cost per feet of finished product will be;
= $640,000 / 1,200,000
= $0.5333 ≈ $0.53
Therefore, the resin materials cost per foot of finished product for June is $0.53
Option a) $0.53 is the right answer
